How to Build Your Net Worth Amidst Inflation
The real estate industry has proven its strength to fare against the seemingly ripple effect initially caused by the pandemic. The crisis has influenced the rise of Inflation rates and is now evidently creeping up to every household.
As one seeks out financial stability, the real estate market has become a favorable choice of investment and store of value in the U.S. A recent NAR (National Association of Realtors) report indicates that,
“…during the first year of the pandemic, the homeownership rate rose even faster due to low mortgage rates. Within a year, the homeownership rate increased by 1.3%, its fastest growth ever. This translates to nearly 2.6 million households that were able to become homeowners across the country in 2020.”
While low mortgage rates have pushed up activity in the real estate market, it cannot also be denied that from a study of NAR stating, “…the net worth of a typical homeowner is 40 times that of a renter in 2021”. That means that owning a home does not only give you the comfort that you need but also provides an edge towards tangible financial benefits and substantial equity gain.
Moreover, according to an article by CNN Business, the median home sales price increased by 16.9% from 2020 to 2021 alone, the highest increase on the record by far. That would mean that a typical homeowner accumulated $50,200 in housing wealth, looking at the median price from 2020 to 2021.
Owning a home during this period is a hedge toward financial stability. The growth of equity shelters one’s needs for tangible financial security and wealth building. Start your journey to homeownership with the most hardworking realtors in the area. Feel free to schedule a consultation with us and we will help you find the home of your dreams.