Real Estate - Top Investment Choice

Real Estate Voted the Best Investment Eight Years in a Row

Real Estate Voted the Best Investment Eight Years in a Row | MyKCM

In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below):

Real Estate Voted the Best Investment Eight Years in a Row | MyKCMIf you’re thinking about purchasing a home this year, this poll should reassure you. Even when inflation is rising like it is today, Americans agree an investment like real estate truly shines.

Why Is Real Estate a Great Investment During Times of High Inflation?

With inflation reaching its highest level in 40 years, it’s more important than ever to understand the financial benefits of homeownership. Rising inflation means prices are increasing across the board. That includes goods, services, housing costs, and more. But when you purchase your home, you lock in your monthly housing payments, effectively shielding yourself from increasing housing payments. James Royal, Senior Wealth Management Reporter at Bankrateexplains it like this:

A fixed-rate mortgage allows you to maintain the biggest portion of housing expenses at the same payment. Sure, property taxes will rise and other expenses may creep up, but your monthly housing payment remains the same.”

If you’re a renter, you don’t have that same benefit, and you aren’t protected from increases in your housing costs, especially rising rents.

History Shows During Inflationary Periods, Home Prices Rise as Well

As a homeowner, your house is an asset that typically increases in value over time, even during inflation. That‘s because, as prices rise, the value of your home does, too. And that makes buying a home a great hedge during periods of high inflation. Natalie Campisi, Advisor Staff for Forbesnotes:

Tangible assets like real estate get more valuable over time, which makes buying a home a good way to spend your money during inflationary times.

Bottom Line

Housing truly is a strong investment, especially when inflation is high. When you lock in a mortgage payment, you’re shielded from housing cost increases, and you own an asset that typically gains value with time.

Like most markets, the Lewis County housing market has seen mild ups and downs in real estate values over the years, but the overall longerm trend consistenly trends upwards.  Over the last decade, median sale prices have increased nearly 40%, according to statistics provided by the Jefferson-Lewis Board of REALTORS. Over the last two years, the supply of available homes throughout upstate NY and Lewis County has not kept up with demand, and low interest rates have increased homebuyers' purchasing power, sometimes leading to bidding wars on available properties.  As construction costs continue to rise, and more "work from anywhere" buyers enter our market to enjoy the quality of life afforded on the Tug Hill, in the Adirondacks or in our Lewis County towns and villages, a solution to the housing shortage may not be seen in the near future.  

If you want to better understand how buying a home could be a great investment for you, let’s connect today.

*information presented is for educational purposes, and should not be considered financial advice.

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