Opportunity Cost of the Down Payment

A $100,000 down payment invested in the S&P 500 from 2000 to 2025 would have grown to over $600,000, capital that homebuyers sacrifice when locking equity into a single illiquid asset. This opportunity cost nearly doubles the average home's appreciation, which historically lags at 1% above inflation per Shiller's data. Compared to #3's hidden ownership costs, this forfeited growth exceeds maintenance expenses for most markets over 25 years.