Americans’ perceptions of the value of real estate as an investment are rising. That’s according to an annual survey Gallup. Real estate is not only considered the best investment for the ninth year in a row, it’s also chosen by more Americans than ever.
The chart below shows the results of the poll since then Gallup the question began to arise in 2011. As the trend lines show, real estate has been on the rise as the clear favorite for almost a decade:
If you’re thinking about buying a home, let this survey put your mind at ease. Even with inflation as high as it is today, Americans are realizing that home ownership is a powerful financial decision.
How you can benefit from investing in real estate during high inflation
With inflation recently hitting its highest level in 40 years, it’s more important than ever to understand the financial benefits of home ownership. Rising inflation means prices are rising across the board, and that includes goods, services, housing costs, and more. When you buy your home, you secure your monthly housing payments and effectively protect yourself from increases in one of your largest budget items each month.
If you’re a renter, you don’t have the same benefits and aren’t protected from these increases, especially when rents go up. As Danielle Hale, Chief Economist at Immobilienmakler.com, Remarks:
“Rising rents that continue to rise at double-digit rates. . . and The prospect of securing monthly housing expenses in a market with rampant inflation motivates today’s first-time home buyers.”
When inflation has risen in the past, house prices have risen too
Your home is also an asset that usually increases in value over time, even during inflation. When prices go up, so does the value of your home. Mark Cussen, financial writer for Investopediaput it this way:
“There are many benefits of investing in real estate. . . . It often serves as a good inflation hedge, since there will always be demand for homes regardless of the economic climate, and because as inflation rises, so do property values. . . .”
And since rising property values help increase your equity, and therefore your net worth, home ownership has historically been a good hedge against inflation.
Buying a home is a tough decision. No wonder so many people consider it the best long-term investment, even when inflation is high. When you buy, you help protect yourself against rising housing costs and you own an asset that usually appreciates in value over time. If you would like to better understand why buying a home could be a great investment for you, let us get in touch today.