American sentiment regarding real estate as a valuable investment is on the rise, according to Gallup’s annual survey. Notably, real estate has held its position as the preferred investment for the ninth consecutive year, and more Americans than ever before have chosen it.
The graph below illustrates the survey results since Gallup began posing the question in 2011, showing the sustained dominance of real estate as the favored choice over nearly a decade:
If you’re contemplating a home purchase in South Bend, this survey should offer reassurance. Even in times of elevated inflation, Americans recognize that homeownership is a sound financial decision.
Leveraging Real Estate as a Hedge Against Inflation
Given the recent 40-year high in inflation rates, it’s crucial to appreciate the financial advantages of owning a home. As inflation drives prices upward across various sectors, including goods, services, and housing costs, investing in a home enables you to stabilize your monthly housing expenses. This, in turn, shields you from the mounting costs associated with one of your most substantial monthly budgetary items.
In contrast, renters lack this benefit and remain vulnerable to rent increases, particularly as rental rates surge. As Danielle Hale, Chief Economist at realtor.com, points out, “The surge in rents, which continues at a double-digit pace… and the opportunity to secure a fixed monthly housing cost in a market marked by widespread inflation are motivating first-time homebuyers today.”
Historical Trends Show Rising Home Values Amid Inflation
Your home is also an asset that typically appreciates over time, even during periods of inflation. This is because as prices rise, so does the value of your home. Mark Cussen, Financial Writer for Investopedia, elaborates, “Real estate investment offers numerous advantages… it often serves as an effective hedge against inflation because the demand for homes persists regardless of economic conditions, and property values tend to rise with inflation.”
Furthermore, the appreciation of home values contributes to the growth of your equity and, consequently, your overall net worth. Historically, homeownership has served as a dependable safeguard against the impact of inflation.
Purchasing a home in South Bend is a resolute decision, and it’s no surprise that many regard it as the top long-term investment choice, even in times of heightened inflation. By acquiring a home, you not only shield yourself from rising housing costs but also own an asset that typically appreciates with time. To gain a better understanding of how buying a home can be an excellent investment opportunity for you, consider reaching out to a local real estate advisor today.
