The majority of Americans now believe in the value of real estate as an investment. According to an annual survey from Gallup, not only is real estate viewed as the ideal investment for the ninth year in a row, but more Americans than before have voted on it.
This Gallup Poll graph which started in 2011 clearly indicates the continued rise rise of positive opinion people have about real estate as an investment.
Inflation is high, but Americans certify that owning your own home is still a powerful financial decision to make.
So, how can an investment in real estate benefit you during high inflation? Because inflation has reached its highest level since the 1980’s, it’s more important now more than ever to recognize the financial benefits of homeownership. When inflation rises, it means that all prices of goods, services, housing costs and more are increasing. If you buy at a certain inflation rate, you’ll lock in that value in your monthly housing payments, effectively shielding you when prices start to increase again.
If you resort to being a tenant, you won’t have the same benefits. Danielle Hale, Chief Economist at realtor.com says, “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.”
Does a house increase in value during inflation, too? Yes. Another thing you should also realize is that your house is an asset that typically increases value over the years, even during inflation. Mark Cussen, Financial Writer for Investopedia notes, “There are many advantages to investing in real estate… It often acts as a good inflation hedge since there will always be a demand for homes, regardless of the economic climate, and because as inflation rises, so do property values…”
Buying a home is a big and powerful decision. It’s clear why many people view it, especially Americans, as the best long-term investment, even in the midst of a worldwide inflation crisis. If you want to better understand how buying a home could be a great investment for you, let’s connect today.