The modern-day struggle to afford a home can feel overwhelming, but the solution to this problem is often simpler than it seems. Most of the time, we just need to stop thinking the way society has conditioned us to think—that we’re victims of outside forces beyond our control—and instead adopt a mindset more akin to Mustachianism.
Yes, houses are expensive. But the reality is that houses are just like any other product: they come at a wide range of prices, all determined by supply and demand. And while we may feel attached to our hometowns or regions, being born in a particular place doesn’t automatically grant us the ability to afford a house there, especially as prices continue to climb. Much like a baby born at Apple’s headquarters in Cupertino doesn’t automatically receive a new iPhone Pro Max every year, just because we live in a particular area doesn’t mean we’re entitled to buy a home there.
The Mustachian Framework for House Shopping
Before diving into the housing market, we need to apply the same decision-making process we use for any other purchase. Ask yourself these essential questions:
- Can I afford this right now?
- Do I truly need or want it enough to justify the purchase?
- Are there alternatives that meet my needs at a lower cost, and what are their pros and cons?
- What is the most efficient way to obtain it, considering all the above factors?
With these questions in mind, when it comes to buying a house, the first step is to run the numbers. This includes considering whether you should rent, buy, or perhaps even look into house hacking (buying a property and renting part of it out). You might start by looking within your current city, but also keep in mind that there are numerous other cities—and even countries—where people are living happy, fulfilling lives for a fraction of the cost.
But Wait… I Don’t Want to Move!
At this point, some people get defensive. “I don’t want to leave my city,” they might say. And that’s understandable—many of us have deep roots in the places we live, and leaving can feel like an insurmountable challenge. But there’s a difference between genuine attachment to a location and the fear of change. It’s important to question your assumptions, because this is exactly the type of thinking that keeps you stuck in a cycle of inflated house prices and limited options.
The truth is that our national reluctance to relocate has led to an irrational pattern in housing markets: some areas are ridiculously expensive, while others remain astonishingly cheap. And while there’s often a correlation between the quality of life and the price of a home, it’s not always a perfect one. This presents an opportunity for those willing to break free from traditional thinking.
A Real-World Example
Take my personal experience: I moved to Longmont, Colorado, in 2005. Back then, the homes were affordable—around $200,000—making it a great option for my young family. Fast forward to today, and the average home price is $540,000, with some homes costing up to $450 per square foot. At that price, Longmont now competes with a broader range of cities offering better amenities for the same or even lower costs.
Here’s where the Mustachian mindset comes in. Instead of simply accepting the high prices in my hometown, I can look at the bigger picture. The world is full of other cities—places with sunshine, affordability, and a good quality of life. So, I decided to take a deep dive into the numbers, using tools like FRED’s list of metro areas with price-per-square-foot data, to better understand where my housing dollars could stretch further.
Making Sense of Housing Prices
Let’s say you’re like me, and you prioritize sunny climates and affordable living. From my research, I discovered that if I wanted to save money, Albuquerque might be a good option. If I wanted to stay within the same price range as Longmont, Denver would offer me a nicer quality of life. And if I were willing to spend a bit more to live in a truly exceptional place, Boulder would be the top choice.
I also pulled the data from FRED into a spreadsheet, sorting it by cost per square foot to highlight affordable cities in the $100 per square foot range. For example, a 2,000-square-foot home at that price would cost about $200,000. I even added a column to track the change in house prices over the past year, which helped me identify cities where prices were either rising or falling.
Starting Your Own Search
A chart like this is only the beginning. While it’s helpful to start with hard data, you also need to do some additional research before making any big decisions. Visit potential cities to get a feel for the area, check out local amenities, and talk to residents. The goal is to start with data, then supplement that with firsthand knowledge, making the process fun and informative.
The reality is, the housing market isn’t a one-size-fits-all scenario. Different cities, states, and even countries offer vastly different living situations, all with their own unique pros and cons. But by using the Mustachian approach—questioning your assumptions, doing the math, and considering alternatives—you can make a more informed and deliberate decision about where and how to live.
The Big Takeaway
The housing market can be daunting, but it doesn’t have to hold you hostage. You don’t have to stay stuck in an expensive city just because you’ve always lived there or because it’s where you’re most comfortable. With a little creativity, data analysis, and a willingness to embrace change, you can find a home that fits your financial goals, no matter where it is. The key is to think beyond the obvious and make choices that align with your values—just like a true Mustachian would.
