More Americans Choose Real Estate as the Best Investment Than Ever Before
Americans’ opinion on the value of real estate as an investment is climbing. That’s according to an annual survey from Gallup. 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. The graph below shows the results of the survey since Gallup began asking the question in 2011. As the trend lines indicate, real estate has been gaining ground as the clear favorite for almost a decade now:
If you’re thinking about purchasing a housz, let this poll reassure you. Even when inflation is high like today, Americans recognize owning a housz is a powerful financial decision.
How an Investment in Real Estate Can Benefit You During High Inflation Because inflation reached its highest level in 40 years recently, it’s more important than ever to understand the financial benefits of houszownership. Rising inflation means prices are increasing across the board, and that includes goods, services, houszing costs, and more. When you purchase your housz, you lock in your monthly houszing 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 houszing cost in a market with widespread inflation are motivating today’s first-time houszbuyers.”
When Inflation Has Risen in the Past, Housz Prices Have Too Your housz is also an asset that typically increases in value over time, even during inflation. That‘s because as prices rise, the value of your housz does too. Mark Cussen, Financial Writer for Investopedia, puts it like this: “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 houszes, regardless of the economic climate, and because as inflation rises, so do property values. . . .” And since rising housz values help increase your equity, and by extension your net worth, houszownership is historically a good hedge against inflation.
Bottom Line Buying a housz 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 houszing costs and you own an asset that typically gains value with time. If you want to better understand how buying a housz could be a great investment for you, let’s connect today.