Owning a Home Helps Protect Against Inflation

Dated: May 24 2023

Views: 101

You’re probably feeling the impact of high inflation every day as prices have gone up on groceries, gas, and more. If you’re a renter, you’re likely experiencing it a lot as your rent continues to rise. Between all of those elevated costs and uncertainty about a potential recession, you may be wondering if it still makes sense to buy a home today. The short answer is – it does. Here’s why. 

Homeownership actually shields you from the rising costs inflation brings.

Freddie Mac explains how: 

“Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.”

Unlike rents, which tend to rise with time, a fixed-rate mortgage payment is predictable over the life of the mortgage (typically 15 to 30 years). And, when the cost of most everything else is rising, keeping your housing payment stable is especially important.

The alternative to homeownership is renting – and rents tend to move alongside inflation. That means as inflation goes up, your monthly rent payments tend to go up, too (see graph below):

A fixed-rate mortgage allows you to protect yourself from future rent hikes. With inflation still high, when your rental agreement comes up for renewal, your property manager may decide to increase your payments to offset the impact of inflation. Maybe that’s why, according to a recent survey, 73% of property managers plan to raise rents over the next two years.

 Having your largest monthly expense remain stable in a time of economic uncertainty is a major perk of homeownership. If you continue to rent, you don’t have that same benefit and aren’t as protected from rising costs.

Bottom Line

A stable housing payment is especially important in times of high inflation. Let’s connect so you can learn more and start your journey to homeownership today.

Blog author image

Anjana Budhathoki

🌱 Embracing the Journey of Motherhood & Real Estate Since 2016Hello there! I’m Anjana Budhathoki, a dedicated mother to two beautiful daughters and a passionate real estate broker. My jou....

Latest Blog Posts

Navigating Fairfax, VA: 10 Must-Know Tips for First-Time Home Buyers

Are you considering buying your first home in Fairfax, VA? Congratulations! Fairfax is a vibrant and diverse community located in Northern Virginia, offering a mix of urban amenities and suburban

Read More

Your Ultimate Guide to Fairfax, VA Real Estate: Finding Your Dream Home

Welcome to Fairfax, Virginia - a vibrant community nestled in the heart of Northern Virginia. Whether you're a first-time homebuyer or looking to upgrade to your dream home, Fairfax offers a diverse

Read More

Top 5 Reasons To Hire an Agent When Buying a Home [INFOGRAPHIC]

Some HighlightsHiring an agent when buying a home helps you understand the buying process and the local market.They’ll also go over contracts and fine print with you, so

Read More

Outdoor Projects Can Boost Curb Appeal When You Sell [INFOGRAPHIC]

Some HighlightsIn real estate, a good first impression is key. If the outside of a house looks welcoming, more people will want to come in and see it.Your agent helps you by giving

Read More