Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey
. Not only is real estate viewed as the best investment for the ninth year in a row, but more Americans selected it than ever before.
If you’re thinking about purchasing a home, let this poll reassure you. Even when inflation
is high like today, Americans recognize owning a home is a powerful financial decision
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, and that includes goods, services, housing costs, and more. When you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increases on one of your biggest budgetary items each month.If you’re a renter, you don’t have that same benefit, and you aren’t protected from these increases, especially as rents rise
. As Danielle Hale, Chief Economist at realtor.com, notes
“Rising rents, which continue to climb at double-digit pace . . . and the prospect of locking in a monthly housing cost in a market with widespread inflation are motivating today’s first-time homebuyers.”
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. That‘s because as prices rise, the value of your home does too. Mark Cussen, Financial Writer for Investopedia
, puts it like this
And since rising home values help increase your equity
, and by extension your net worth
, homeownership is historically a good hedge against inflation.
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 and you own an asset that typically gains value with time.