“Real Estate is seen as a better investment than stocks, gold and savings for 8 years.”
In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below):
If you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.
Why Is Real Estate a Great Investment During Times of High Inflation?
With inflation reaching its highest level in 40 years, 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. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrate, explains it like this:
“A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”
If you’re a renter, you don’t have that same benefit, and you aren’t protected from increases in your housing costs, especially rising rents.
History Shows During Inflationary Periods, Home Prices Rise as Well
As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes buying a home a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbes, notes:
“Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.”
Bottom Line
Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and 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, let’s connect today.
To view original article, visit Keeping Current Matters.
Mortgage Rates Drop to Lowest Level in over a Year and a Half
Mortgage rates have fallen more than half a percent . . . and are at their lowest level since February 2023.
The Best Time to Buy a Home This Year
Mortgage rates just hit their lowest point in 19 months, and that goes a long way to help with your purchasing power and affordability. Are you ready to buy?
Why Pre-Approval Should Be at the Top of Your Homebuying To-Do List
While home affordability is finally starting to show signs of improving, it’s still tight. Your lender can help you.
2025 Housing Market Forecasts: What To Expect
Looking ahead to 2025, it’s important to know what experts are projecting for the housing market.
Could a 55+ Community Be Right for You?
the number of listings tailored for homebuyers in this age group has increased by over 50% compared to last year.
Are We Heading into a Balanced Market?
Whether you’re buying or selling, understanding how the market is changing gives you a big advantage. Your agent has the latest data and local insights.