More Americans than ever before consider real estate to be the best investment.
The value of real estate as an investment is gaining popularity among Americans. According to Gallup's yearly study, this is the case. For the eighth year in a row, real estate is seen as the finest investment, with more Americans choosing it than ever before.
Since Gallup began asking the topic in 2011, the graph below illustrates the results of the survey. For almost a decade, as the trend lines show, real estate has been gaining ground as the clear favorite:
Allow this survey to reassure you if you're considering about buying a house. Even in times of high inflation, such as today, Americans recognize that buying a home is a wise financial option.
How a Real Estate Investment Can Benefit You During Inflation
Because inflation has reached its greatest level in 40 years, understanding the financial benefits of homeownership is more crucial than ever. Inflationary pressures suggest that prices are rising across the board, including commodities, services, and housing costs. When you buy a house, you effectively lock in your monthly housing payments, effectively protecting yourself against increases in one of your most important monthly expenses.
You don't have that benefit as a tenant, and you're not protected from these increases, especially when rents climb. As realtor.com's Chief Economist Danielle Hale points out:
“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.”
Home prices have risen in tandem with inflation in the past.
Your home is also an asset that appreciates in value over time, even when inflation is high. This is because as prices rise, so does the worth of your home. Investopedia Financial Writer Mark Cussen describes it this way:
“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. . . .”
Homeownership has historically been a solid inflation hedge since rising property values assist raise your equity and, by extension, your net worth.
Purchasing a home is a significant decision. It's easy to see why, even when inflation is high, so many people see it as the ideal long-term investment. When you buy, you can protect yourself from rising housing expenses and obtain ownership of an asset that normally appreciates over time. Let's connect today to learn more about how owning a home could be a fantastic investment for you.