As the Gallup trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:
If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation is high like today, Americans recognize homeownership as a powerful financial decision.
How an Investment in Real Estate Can Benefit You During High Inflation
Inflation reached its highest level in 40 years recently. it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments. This effectively shields you from increases on one of your biggest budgetary items each month.
If you’re a renter, you don’t have that same benefit. You aren’t protected from these increases, especially as rents rise. And, we have been seeing double digit increases in monthly rent payments.
When Inflation Has Risen in the Past, Home Prices Have Too
Your house is also an asset that typically increases in value over time. Even during inflation. As prices rise, the value of your home does too. There will always be a demand for homes, regardless of the economic climate.
Rising home values help increase your equity, and by extension your net worth. Homeownership is historically a good hedge against inflation.
Bottom Line
Buying a home is a powerful decision. It’s no wonder why so many people view it as the best long-term investment, even when inflation is high. When you buy, you help shield yourself from increases in your housing costs. You own an asset that typically gains value with time.
If you want to better understand how buying a home could be a great investment for you, contact Moon Township Realtors at the Diane McConaghy Team with REMAX Select Realty. We can help you explore all the options in our local market – and beyond – so you can achieve your homeownership dreams.
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