While realtors will tell you yes because its a better investment as the house appreciates over the years you will have a better asset with a more expensive house. Realtors also make their money from commissions (the money expensive the house the bigger the commission). You may be able to afford a $300,000 house and pay around $2,700 a month. but what if? What if you lose your job? What if life changes? What if an emergency happens? Do you still want to be paying $2,700 a month? Even if you can afford a more expensive house doesn’t mean you need to spend that much. Shop around the area you like. Maybe live a town over, or give up an extra bathroom. Imagine paying $1,000 a month instead of $2,700, now you can afford to vacation, live with less stress, or even afford fixing up the lower costing house. Being house poor may impress the Jones but offers little in the way of piece of mind.