It feels like everything is getting more expensive these days—because it is! Inflation has been hanging around longer than anyone wanted, making everything from groceries to gas hit your wallet harder. So, with prices climbing, you might wonder: Is now really the right time to buy a home?
Spoiler alert: Yes! Owning a home is one of the smartest ways to fight against rising costs. Here’s why.
A Fixed Mortgage Keeps Your Biggest Bill Steady
When you buy a home with a fixed-rate mortgage, your monthly payment for principal and interest stays the same—no surprises, no rent hikes, no headaches. Sure, property taxes and insurance might adjust slightly, but your biggest monthly expense is locked in.
Now, let’s talk about renting. Rent prices? They climb—and usually faster than inflation. Just check out this data from the Bureau of Economic Analysis (BEA) and the Census Bureau:
- In 2023, rent prices shot up 11.6%, while inflation was only 3.2%—ouch!
- Even looking at the long term, rents have outpaced inflation every decade.
The bottom line? Renters face higher costs year after year, while homeowners with fixed mortgages can budget with confidence.
Home Values Usually Outpace Inflation (And Build Your Wealth!)
Here’s the other win for homeowners: Your home’s value typically grows faster than inflation. The second image with data from the BEA and Fannie Mae says it all:
- In 2021, home prices skyrocketed 18.3%, while inflation was 4.7%—a massive gain!
- Even in calmer years like 2023, home values rose 5.5%, beating inflation at 3.2%.
That means real estate isn’t just shelter—it’s a solid investment. While inflation eats away at your savings’ buying power, your home gains value and builds equity.
Renting vs. Owning: Who Really Wins?
When inflation drives up costs, landlords pass that pain straight to renters. So, you’re stuck paying more without getting anything in return—no equity, no appreciation, just higher bills.
But homeowners? They actually benefit from rising prices. Here’s how:
Locked-In Payments: No rent hikes—just predictable monthly payments.
Appreciation Power: Your home’s value goes up, building long-term wealth.
Equity Growth: Every payment you make boosts your net worth, not your landlord’s.
The Future Looks Bright for Homeowners
Experts predict home prices will keep rising in the years ahead. Waiting will likely cost you more down the road. Buying now means locking in today’s prices and watching your investment grow over time.
The Bottom Line
Inflation might make everything else unpredictable, but homeownership gives you stability. Your mortgage payment stays consistent, and your home’s value will likely climb.
So, here’s a question: How would having a fixed housing payment change your planning for the future?
When you’re ready to explore your options, reach out to Great Missouri Homes—we’re here to help you turn rising costs into real opportunities!
Hi! I'm Merla Turner, owner of Great Missouri Homes and a local Kansas City area Realtor. Thank you for reading this article. If you have any questions, suggestions, or ideas, call me at 816-328-2887 or fill out the contact form below, I am here for you. And remember - when it's your turn to buy or sell real estate, turn to Merla Turner!
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