Homeownership as an Investment

“Renting can make sense as a lifestyle choice or because of income
constraints. As a means to building wealth, however, there is no practical substitute for homeownership.” - “Homeownership and Wealth Creation,” editorial in The New York Times*

Typically, the purchase of a home is the largest or one of the largest financial transactions of one’s life, and has often been a very good or even spectacular investment, especially over the longer term.

Below are some of the reasons why this has often been the case:

Long-term home-price appreciation trends: January 2000 – December 2022, the national house price appreciated approximately 197% according to the S&P CoreLogic Case-Shiller Home Price Index vs. a consumer-price inflation rate of approximately 70% to 75%.** (Appreciation rates vary widely between different markets and over different periods of time – some metro areas saw higher or lower rates, and the calculation depends on the exact period being measured. https://lnkd.in/gvtyWdjK



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