Today’s higher mortgage rates, inflationary pressures, and talk of a potential recession may have you asking: “Should I still buy a home this year?” While it’s true the current market comes with challenges, it’s essential to look beyond the short term and consider the long-term financial benefits of homeownership.
Just ask someone who bought a home 5, 10, or even 30 years ago—they’re likely to tell you it was one of the best decisions they ever made. Why? Because of how home values appreciate over time—and how that builds personal wealth.
According to a recent Fannie Mae survey, 70% of respondents believe buying a home is a safe investment.
Home Price Growth Over Time
Let’s take a look at the real numbers behind home price appreciation. The following data from the Federal Housing Finance Agency (FHFA) shows how much home values have increased:
Over the Last 5 Years
Nationwide, home prices grew by over 56% on average in just five years. While this varies slightly by region, every area saw significant appreciation. That’s a major return on investment in a relatively short period.
Over the Last 30+ Years
Since Q1 of 1991, home prices have increased over 290% on average across the country. That means a home purchased 30 years ago has nearly tripled in value. These long-term gains are a key reason why most homeowners are glad they bought—even if there were challenges at the time.
What About Recent Price Trends?
Despite fears in late 2022 that home prices would crash, that didn’t happen. While prices have cooled from the frenzy of the pandemic “unicorn” years, they’ve already started rebounding in many areas. So if you buy today, chances are good that your home will continue to increase in value over time.
The Cost of Waiting: Renting vs. Buying
The alternative to buying is renting—but rental prices have been rising for decades with no signs of stopping. When you rent:
-
You face annual lease increases.
-
Your payments build your landlord’s wealth, not your own.
-
You miss out on equity growth and home value appreciation.
Buying a home allows you to build wealth over time and protect yourself from inflation.
Bottom Line
If you’re asking yourself whether buying a home still makes sense in today’s market, remember this: homeownership has consistently proven to be one of the most powerful long-term financial decisions you can make. If you're ready to explore your options, connect with a trusted real estate agent to get expert guidance and personalized advice.
