US Household Debt Reaches $18T, Mortgage Rates Soar: Is Bitcoin the New Path to Wealth?

As US household debt hits $18 trillion and mortgage rates continue to rise, the traditional path to wealth through real estate is showing signs of a slowdown. Meanwhile, Bitcoin’s supply crunch is intensifying, making it an increasingly attractive alternative for investors seeking a scarce and valuable asset.

Real Estate Slowdown: A Shift in the Market

For years, real estate has been a dependable way to build wealth, with home values generally rising over time. However, the current housing market is showing signs of a slowdown, with homes sitting on the market longer and sellers cutting prices. According to recent data, the average home is now selling for 1.8% below asking price, the biggest discount in nearly two years.

In Florida, the slowdown is even more pronounced, with over 60% of listings remaining unsold for more than two months. Some homes in the state are selling for as much as 5% below their listed price, the steepest discount in the country.

From Scarcity Hedge to Liquidity Trap

The housing market is experiencing a sharp slowdown, weighed down by high mortgage rates, inflated home prices, and declining liquidity. The average 30-year mortgage rate remains high at 6.96%, a stark contrast to the 3%–5% rates common before the pandemic.

Several key trends highlight this shift:

  • The median time for a home to go under contract has jumped to 34 days, a sharp increase from previous years.
  • A full 54.6% of homes are now selling below their list price, a level not seen in years.
  • The median sale-to-list price ratio has fallen to 0.990, reflecting stronger buyer negotiations and a decline in seller power.

Too Many Homes, Too Few Coins

While the housing market struggles with rising inventory and weakening liquidity, Bitcoin is experiencing the opposite – a supply squeeze that is fueling institutional demand. Unlike real estate, which is influenced by debt cycles, market conditions, and ongoing development that expands supply, Bitcoin’s total supply is permanently capped at 21 million.

The approval of spot Bitcoin ETFs in early 2024 triggered a massive wave of institutional inflows, dramatically shifting the supply-demand balance. Since their launch, these ETFs have attracted over $40 billion in net inflows, with financial giants like BlackRock, Grayscale, and Fidelity controlling the majority of holdings.

The Flippening: A Generational Shift

As of January 2025, the median US home-sale price stands at $350,667, with mortgage rates hovering near 7%. This combination has pushed monthly mortgage payments to record highs, making homeownership increasingly unattainable for younger generations.

Meanwhile, Bitcoin has outperformed real estate over the past decade, boasting a compound annual growth rate (CAGR) of 102.36% since 2011 – compared to housing’s 5.5% CAGR over the same period.

A deeper generational shift is unfolding, with Millennials and Gen Z prioritizing financial flexibility and mobility over homeownership. The idea of owning a decentralized, borderless asset like Bitcoin is far more appealing than being tied to a 30-year mortgage with unpredictable property taxes, insurance costs, and maintenance expenses.

Surveys suggest that younger investors increasingly prioritize financial flexibility and mobility over homeownership. Many prefer renting and keeping their assets liquid rather than committing to the illiquidity of real estate.

Bitcoin’s portability, round-the-clock trading, and resistance to censorship align perfectly with this mindset.

The Future of Wealth

Does this mean real estate is becoming obsolete? Not entirely. It remains a hedge against inflation and a valuable asset in high-demand areas. However, the inefficiencies of the housing market – combined with Bitcoin’s growing institutional acceptance – are reshaping investment preferences.

For the first time in history, a digital asset is competing directly with physical real estate as a long-term store of value. The question is no longer whether Bitcoin is an alternative to real estate – it’s how quickly investors will adjust to this new reality.

Stay up-to-date with the latest news and trends on Global Crypto News.

Post Views: 1