The Weird Real Estate Secret to Fighting Inflation

Here's some good news about the real estate market, and we need some good news right now:

As of the second quarter of 2022, home ownership rates were rising. So that's good.

And we say, well, why would anyone not want to be a homeowner? Right? When we're in the real estate business, we think everybody should be a homeowner.

But sometimes, renters have a hard time getting over the hump of deciding if it is a good idea to become a homeowner. Especially when we're seeing interest rates rise. We've seen prices still rising in some markets by double digits.

One thing you can point to, which is really powerful, is the concept of inflation.

Everybody knows what inflation is and inflation is touching everybody. And so you can point out that, "Hey, you know, I'm sure you're aware that inflation right now is at a record high, a 40-year high. The last reading was 8.5% inflation. But what people don't realize is that rents are actually under that inflationary pressure as well. The latest reading we have on rent increases is above 14% for the year. So that's gonna price a lot of people out of the current house they're living in. And it's gonna be a challenge because not only are there the rent going up this year, it's likely to go up next year.

"Now, one way you can beat inflation is by buying a house and locking in a mortgage rate that is stable and steady for the next 30 years. You will have no rent increases. And yes, it may seem a little bit expensive and a little bit of a stretch now, once you get in there for three or four, five years, all your renter friends are gonna be so jealous because they're gonna see their rents continue to rise, rise, rise, rise, rise."

Here's something else that you should point out:

The average renter in America has a net worth of $8,000. And the average homeowner in America has a net worth of $300,000.

Or in other words:

A 40x higher net worth than what the renter has!

So the path to wealth in America is really clear. For most Americans, where they're gonna get their most assets is by home ownership. It's a fr savings account and it's combined with appreciation and gives you so much power to stabilize and fight inflation over the long haul.

Guys, these are messages we should be taking to our buyers and our market every single day.

Hope that helps you today. Go out there and crush it in your market.

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