TLDR;
Jackie Baker discusses the harsh realities of homeownership in 2026, including rising insurance costs, property taxes, and maintenance expenses. She also addresses the changing real estate market, where the traditional five-year rule for breaking even on a home purchase may no longer apply. Additionally, she touches on lawsuits against Zillow and offers advice on finding reliable real estate agents and home inspectors.
- Rising costs of homeownership (insurance, taxes, maintenance)
- The five-year rule is outdated
- Zillow lawsuits and concerns
- Importance of due diligence and professional guidance
Introduction [0:02]
Jackie Baker welcomes viewers back and outlines the topics for the live stream, which include the true cost of owning a home in 2026 and updates on lawsuits against Zillow. She encourages viewers to ask questions using "QQQ" and share their housing wins in the comments.
The True Cost of Owning a Home in 2026 [2:55]
Citing an article from Realtor.com, Jackie emphasizes that the real cost of homeownership extends far beyond the mortgage payment, including insurance, taxes, and repairs. Experts advise buyers to consider their mortgage payment as a starting point rather than an upper limit, leaving financial room for additional expenses.
Insurance Instability [4:32]
Insurance instability is identified as a significant budget concern for 2026, with premiums having spiked nearly 70% since 2021 and projected to climb an additional 16% by 2027. Rising reconstruction costs, weather-related risks, and stricter underwriting practices contribute to higher rates. Jackie warns viewers to prepare for these increases to avoid potential foreclosures.
Property Tax Pressure [7:27]
Property taxes remain a major pain point for homeowners, with pressure unlikely to ease in 2026. Even with relief measures in some states, many homeowners will still feel the squeeze from rising bills. Jackie advises viewers to talk to their local tax assessor to understand the assessment cycle and avoid being blindsided by unexpected increases.
Maintenance Costs [10:09]
Maintenance is often underestimated and underfunded by homeowners. Jackie suggests budgeting 2-4% of the home's value annually for repairs, especially in colder climates or older homes. She advises sellers to address maintenance issues before listing their homes to avoid getting less money.
Homeowners Association (HOA) Dues [12:53]
HOA dues and special assessments can add significant costs to homeownership. Jackie shares her experience of HOA fees increasing rapidly and advises buyers to review the financials, check for upcoming assessments, and inquire about the frequency and amount of HOA fee increases.
Q&A and Housing Wins [15:12]
Jackie answers viewer questions about bridge loans versus HELOCs, claiming home repairs on taxes, and recommendations for mortgage lenders. She congratulates viewers who recently closed on homes and acknowledges the challenges of the current housing market.
The Five-Year Rule is No More [26:57]
Jackie discusses how the traditional five-year rule for breaking even on a home purchase is outdated due to stubborn mortgage rates, high transaction costs, and slowing appreciation. She cites an article stating that the break-even timeline may now be as long as 10 years.
Equity Headwinds for 2026 Buyers [29:04]
Slowing appreciation, high transaction costs, and the risk of slipping home prices are identified as equity headwinds for 2026 buyers. Jackie notes that some markets have already seen price drops and advises buyers to plan on staying in their homes for a longer period to build equity.
Selling in Today's Market [32:13]
Jackie acknowledges that sellers in certain markets may not get the price they paid for their homes, especially if they bought during the pandemic boom. She advises pricing homes according to the current market and cautions against overpricing.
How Long 2026 Home Buyers Will Need to Stay in Their Home [33:52]
Given the challenges, the estimated break-even timeline for buyers in the year ahead may be as long as 10 years. Even with a 20% down payment, it could take eight years to reach that break-even point. Jackie emphasizes that buying a home is about both finances and lifestyle, offering stability, equity growth, and tax benefits.
Zillow Lawsuits and Concerns [40:07]
Jackie discusses the ongoing lawsuits against Zillow, including accusations of steering people to use their mortgage company and inflating commission rates. She notes that Real Brokerage has been added as a defendant in one of the cases. Jackie advises viewers to be cautious when using Zillow and other third-party websites for real estate information.
Zillow vs Redfin [43:40]
Jackie compares Redfin to Zillow, stating that the listings on these platforms come from the local multiple listing service (MLS) and provide the same information. She cautions against trusting extra information provided by these sites, such as flood risk assessments, and recommends checking official sources like FEMA.
Off-Market Listings [45:46]
Jackie explains that local realtors can sometimes access off-market listings through office exclusives, where properties are not yet publicly listed. She notes that Compass has its own exclusive list, leading to a lawsuit with Zillow.
Mortgage Interest Rates and Custom Home Builders [48:36]
Jackie predicts that mortgage interest rates are unlikely to drop below 4% again and will likely remain in the 5% range. She has never heard of Keystone Custom Home Builder and encourages viewers to share their experiences with different builders.
Finding a Good Real Estate Agent [49:54]
Jackie acknowledges that some real estate agents are not honest and offers to refer viewers to vetted agents. She emphasizes the importance of finding an agent who is honest, knowledgeable, and has a good sales record.
Flood Zones and New Construction [51:01]
Jackie explains that AE flood zones are high-risk areas designated by FEMA with a 1% annual chance of flooding. She shares her negative experiences with Toll Brothers and other builders, advising viewers to get a home inspector when buying new construction.
Pantone's Color of the Year 2026: Cloud Dancer [55:34]
Jackie expresses her disappointment with Pantone's color of the year for 2026, which is "Cloud Dancer," a fancy word for off-white. She questions the significance of the Pantone color of the year and asks viewers for their opinions on alternative colors.
Builder Quality and Reviews [57:58]
Jackie discusses the declining quality of work from contractors and builders, particularly larger builders like Lennar and D.R. Horton. She advises viewers to check reviews, talk to residents in existing communities, and get a home inspector.
Appraisals and Overpaying [1:05:11]
Jackie confirms that banks always send appraisers to homes before financing and that buyers should rely on a good agent to avoid overpaying. She shares a story about Zillow's inaccurate pricing recommendations and emphasizes the importance of communicating with the listing agent to understand the seller's priorities.
Referral Program and Closing Remarks [1:14:06]
Jackie reminds viewers to click on the link in the description box to be referred to a realtor. She expresses her appreciation for viewers' participation and concludes the live stream.
