Peter Schiff claims a house is a ‘money pit’ and renting is the ‘better option’ for many Americans. Which path leads to more wealth in 2026?

“A house depletes your savings. It’s a money pit,” he stated bluntly. “It’s crazy the amount of money that a house costs you.”

His comments fly in the face of homeownership proponents, who often argue that property values appreciate over time. In fact, three-quarters of Americans believe homeownership is “essential” to building wealth, according to the first wave of Northwestern Mutual’s 2026 Planning and Progress Study (2).

And some of the numbers certainly do back up homeowners.

For example, the median sales price of new houses sold in the U.S. was $354,800 in January 2021, according to data published by the Federal Reserve Bank of St. Louis (3). By January 2026, that figure had risen to $400,500, reflecting a nearly 13% increase in five years.

Yet Schiff urges caution when interpreting these figures. Here’s why.

Buying vs. renting

The decision between buying and renting a home depends on a variety of factors, such as financial circumstances, lifestyle preferences, market conditions and interest rates. Schiff acknowledged the individual nature of this choice, but he believes that for many, one option stands out.

“It depends on your circumstances and where the home is located, but for a lot of people — and this has been the case for a long time — renting is a better option,” he stated.

Real estate mogul Grant Cardone makes the point more emphatically.

“People should rent, bro,” he told Wealthy Way Podcast hosts Ryan Pineda and Brian Davila in February 2026. “There’s no real money in owning a single-family home (4).”

Like Schiff, Cardone describes homeownership as a never-ending series of costs and responsibilities.

“In the 20 largest cities in America, rent is 50% of the mortgage,” he said. “This is before the property taxes, before the HOA fees, before the maintenance — you don’t have any of those obligations.”

Cardone’s prediction? “This country will become a renter nation.”

Be a shareholder instead of a landlord

Schiff explains his position by pointing out that a home or investment property can require significant upgrades, which can be costly.

“A lot of the houses that were bought back then, if you don’t redo the kitchens, redo the bathroom, put on a new roof, you know, your audio, visual systems are all obsolete, the wiring — a lot of stuff has to be brought up to date,” he said during the podcast (1).

Not only that, but homes in the U.S. are already “massively overpriced” in the first place, Schiff noted in March 2026 (5).

And elevated home prices, combined with high interest rates, can make purchasing a house unaffordable from the outset.

Case in point: The house price-to-income ratio in the U.S. has stayed near historic highs for the last three years, and fixed-rate mortgage rates are expected to remain elevated above 6% throughout 2026, estimates JPMorgan Chase (6).

However, if you’re interested in investing in income-producing real estate, there are alternatives to buying a house.

Gain entry with low minimums

Instead of buying a single-family home, there’s a way to tap into this market by investing in shares of rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of single-family and vacation rentals, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse their selection of vetted properties, each chosen for income generation and appreciation potential. Once you choose a property, you can start investing with as little as $100, potentially earning monthly dividends.

Plus, once you’re an investor with Arrived, you’ll gain access to their newly launched quarterly secondary market, where investors can buy and sell shares of individual rental and vacation rental properties directly on the platform.

This allows you to buy into properties you may have missed at the initial offering or sell shares before a property reaches the end of its hold period.

With access to more than 400 properties in 60 cities, this new way to trade real estate opens up flexibility and opportunities to gain access to more properties every quarter.

Enjoy a hands-off experience

But that’s just one way to get into the real estate space.

Want to invest in professionally vetted properties? mogul provides a curated experience.

This real estate investment platform offers fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or late-night tenant calls.

Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.