Home ownership is viewed in many circles as a standard rite of passage for young adults. It indicates a certain financial wherewithal and the understanding that buying a home is an early key to building wealth. It’s supposed to be one of your most important investments. It’s the prime ingredient in what we consider the American Dream. And to be frank, if you are in your 30s or 40s and you don’t own a home, you’re very likely to get frequent reminders that you’re burning money on rent without building any equity. 

But is home ownership always a smart move? Are the millennials and members of Generation Z who are struggling to afford homes due to debts and the rising cost of living in dangerous economic territory? In this week’s edition of the IBJ Podcast, personal finance expert Peter Dunn—aka Pete the Planner—breaks down the orthodoxy of home ownership and discusses when it makes the most sense. He says that while owning a home does solve a couple of major financial problems, it can create many more. It’s not at all necessary to get started right away, and there’s a navigable path for renters in the 40s to end up in a very comfortable situation by retirement.