Wednesday, December 18, 2024 / by Vanessa Saunders
Is Housing Still a Wealth Builder? Let’s Look Beyond the Headlines
A recent CBS Morning segment explored the challenges of today’s housing market, highlighting rising mortgage rates and modest increases in home prices. At first glance, the data might seem concerning:
Mortgage rates have jumped from 3.10% in December 2021 to 6.60% in December 2024.
Median home prices have risen from $395,200 (Q3 2021) to $420,400 (Q3 2024).
This shift in affordability has sparked the question: Is homeownership still the wealth builder it once was?
The Bigger Picture
While the market has changed, real estate remains a long-term investment strategy—one that builds wealth over time. Here’s why:
Equity Growth Over Time: Owning a home means every mortgage payment contributes to equity—essentially forced savings. While prices may rise slower today, equity still grows, and homeownership protects against rising rent costs.
Stability in Uncertain Markets: Real estate has historically performed well as a hedge against inflation. Your mortga. ...
Mortgage rates have jumped from 3.10% in December 2021 to 6.60% in December 2024.
Median home prices have risen from $395,200 (Q3 2021) to $420,400 (Q3 2024).
This shift in affordability has sparked the question: Is homeownership still the wealth builder it once was?
The Bigger Picture
While the market has changed, real estate remains a long-term investment strategy—one that builds wealth over time. Here’s why:
Equity Growth Over Time: Owning a home means every mortgage payment contributes to equity—essentially forced savings. While prices may rise slower today, equity still grows, and homeownership protects against rising rent costs.
Stability in Uncertain Markets: Real estate has historically performed well as a hedge against inflation. Your mortga. ...