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Why Home Ownership Protects You Against Inflation

Inflation is on the rise. According to Market Watch, inflation is at 40-year high and experts don’t expect it to slow down, estimating average cost of living could surge as high as 9%. Such dramatic increases make it impossible not to feel the impact in your daily life as gas, food, and other staples steadily become more expensive. These changes often mean consumers hold off on making larger purchases (like a home) until things calm down.

Today, we’re talking about the impact inflation has on the housing market and why purchasing a home might just be the smart choice in this economic environment.

Homeowners take control of one of their largest monthly expenses

We’ve already talked about inflation’s impact on gas, groceries, and other necessities. Just like these daily staples, home and rent prices also increase with rising inflation. If you are renting, you are doubtless anticipating an increase in your monthly payment soon. When purchase a home with a loan, you lock in your rate (or your monthly payment) for 15-30 years. Home repairs, taxes, and other costs associated with home ownership may continue to rise, but by purchasing a home you have ensured your monthly housing payment stays constant, something you cannot always guarantee with renting.

Home appreciation consistently beats out inflation

Sure, rising mortgage rates mean you cannot afford the same home you could a few months ago, but investing in real estate is still a smart decision. For years, home appreciation has consistently outperformed inflation, meaning your home will continue to hold or gain value, even in inflationary times. Consider the following graph:

As you can see above, home appreciation has beat out inflation since the 1970s 9 out of 10 times. This means you can confidently purchase a home now, knowing that not only is it a wise investment, but it is also one that can hedge you against inflation!

So what?

While homes are no longer selling thousands of dollars over asking, real estate market experts expect home values to continue rising due to the continued supply and demand imbalance. And with rising mortgage rates impacting how much home you can actually afford, waiting will only make it more difficult to become a homeowner. Purchase a home now and have the peace of mind that your asset will grow in value over time!

The Bottom Line

Based on current market statistics and projections, we are confident the time to buy a house is now and not later. But we get that’s sometimes easier said than done! At Hamilton & Company, we work with your budget, your timeline, and your needs to find the perfect Greenville home for YOU! Let us help you stabilize your monthly housing cost and invest in an asset that will hedge you against inflation. Fill our our Potential Buyer Form or give us a call at 864-527-7685. We’d love to chat and find out if we’d be a good fit!

A picture of Real Estate Agent Dan Hamilton

Dan Hamilton is the founder of Hamilton & Co. and the lead listing agent for the team. He is the only agent in the Upstate endorsed by Shark Tank star and real estate mogul Barbara Corcoran. Additionally, Dan hosts a weekly radio show on The Answer 94.5 and 106.3 WORD giving tips and advice on real estate and is a frequent contributor for real estate on Your Carolina TV show on WSPA Channel 7. Visit to learn how Dan can help you sell your home.

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