South Florida real estate broker Todd Nepola has harsh words for anyone who believes buying a home is a smart investment.

In a recent TikTok video from @hardtruthsceo, Nepola said point-blank, "A home is a terrible investment." In fact, he doesn't even consider a home to be an investment at all. For Nepola, "It's a luxury item you want to have," similar to his Rolls-Royce. Even though Nepola admits to owning a home, he says, "It's the stupidest investment you could make."

Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one

Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP

The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes

Fans of Bravo's Real Housewives of Miami may recognize Nepola as the ex-husband of Alexia Nepola, one of the housewives on the show, but professionally, Todd is the owner and founder of the commercial real estate firm Current Capital Group.

In the TikTok video, Nepola argued that one reason so many people mistakenly see homes as good investments is because they haven't lived through a downturn. He cautioned viewers, saying, "Homes don't always go up in price. The problem is most people who are 40 years old and younger have never seen a bad real estate market. I've lived through them."

Given his expertise, if Nepola were to invest $100,000 today, it's not surprising that he would choose to invest in commercial property. According to Nepola's playbook, "Learn the game, fix it up, keep it going. Then, eventually, you can refinance and pull some cash out of that and go buy another."

If you pull up a chart of the median U.S. home price, it certainly looks like a decent long-term strategy. Between Q1 2000 and Q1 2026, this average price rose from $165,300 to $408,500, according to the Federal Reserve Bank of St. Louis. In percentage terms, that's roughly a 147% gain.

Although these numbers seem great, they don't tell the whole story. After all, homeowners have to factor in mortgage rates, taxes, insurance and maintenance fees over the years. Plus, homes are illiquid by nature. Unlike an S&P 500 index, you can't realize gains in your home without going through a lot of paperwork, finding a buyer and making sure you have another shelter squared away.

Speaking of the S&P 500, holding a standard ETF like the SPY would have rewarded investors with a superior 395% gain in the same 2000 to 2026 timeframe, not including dividends.

Read More: Vanguard reveals what's coming for U.S. stocks — and it could be bad news for this group of investors

Recent data from the Federal Housing Finance Agency (FHFA) also shows U.S. house prices increased by only 1.7% year over year through the first quarter of 2026. As with all things in real estate, your location will impact just how much (if any) profit you see year by year. Eight states, as well as the District of Columbia, actually had house price declines in the FHFA's latest data.

Then there's the time factor. In today's economic climate, Zillow estimates it'll take 8.5 years for a household to have the funds for a 20% down payment on a standard single-family house, if they're consistently saving 10% of the median income. Understandably, that has pushed up the median age for a first-time homebuyer to 40, according to the National Association of Realtors.

But even after hitting this milestone and getting a mortgage, Zillow shows new homeowners won't be in a better financial place than renters until 6.2 years after purchasing the home. And that's just the national average.

In certain markets like San Jose, Portland or Austin, you're looking at total timelines that stretch multiple decades.

The combo of elevated home prices and high mortgage rates has made more Americans feel pessimistic about their prospects for homeownership. Research from Gallup revealed a paltry 25% of non-homeowners say they'll likely buy a home in the next five years.

It also seems like many Americans think investing in a home isn't a wise move, at least not today. As Gallup notes, 67% of respondents said right now is a "bad time" to buy a house.

But amid all this doom and gloom, most Americans probably wouldn't agree with Nepola that homeownership is always a dumb idea. In fact, 65% of Gallup's respondents said they believe home prices in their area will go up in the next year.

Another 2026 Gallup report found that real estate remains the "best long-term investment" in most Americans' minds, with 38% of the vote. That's handily ahead of stocks (20%) and gold (18%).

Millionaires under 43 hold only 25% of their wealth in stocks. Here's where their money is actually going

Here's the average income of Americans by age in 2026. Are you keeping up or falling behind?

Dave Ramsey says this 1 indulgent purchase stops Americans from becoming wealthy. Here's what he recommends instead

Here are the 7 top habits of 'quietly wealthy' Americans. How many do you follow?

Join 250,000+ readers and get Moneywise's best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

This article originally appeared on Moneywise.com under the title: Florida real estate mogul says your home is 'a terrible investment' — and he'd put $100K somewhere else. Is he right?

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.