With the cost of nearly everything on the rise, it’s no surprise that inflation has remained higher than expected. Prices for goods, services, and housing continue to climb, leaving many people wondering: Is now really the right time to buy a home?
Here’s the good news—owning a home is one of the best ways to protect yourself from the impact of inflation.
A Fixed Mortgage Shields You from Rising Housing Costs
One of the biggest benefits of homeownership is the stability of a fixed-rate mortgage. When you buy a Triangle Area home with a fixed-rate loan, your largest monthly expense—your mortgage payment—remains predictable. While property taxes and insurance costs may fluctuate slightly, your principal and interest stay the same, no matter how much inflation rises.
The same can’t be said for renters. Rent prices typically increase over time—and often at a rate higher than inflation. Just look at the data from the Bureau of Economic Analysis (BEA) and the Census Bureau (see graph below):
So, while renters face higher costs year after year, homeowners with a fixed mortgage rate lock in their monthly payments, making it easier to budget no matter what happens with inflation.
Home Prices Typically Outpace Inflation
Another key reason homeownership is a great hedge against inflation is that home values tend to appreciate over time—often at a faster rate than inflation. Data from BEA and Fannie Mae confirms this trend (see graph below):
This makes real estate one of the strongest long-term investments during periods of rising prices. While inflation can erode the value of cash savings, real estate typically holds or gains value, helping homeowners build wealth.
For renters, inflation works against them. When costs rise, landlords often pass those increases onto tenants in the form of higher rent payments. That means renters continually pay more without gaining any financial benefits.
But as a homeowner, rising home values work in your favor. Over time, as Raleigh home prices appreciate, your equity grows, helping you build long-term wealth. And with experts forecasting continued home price growth, homeownership remains a strong investment that typically outperforms inflation.
Bottom Line
Inflation makes everyday expenses unpredictable, but owning a home in the Triangle Area provides stability. Unlike rent, your monthly mortgage payment remains steady. Plus, the value of your Raleigh home is likely to increase, allowing you to build wealth over time.
If you’re ready to take control of your housing costs and start building equity, contact Linda Craft Team Realtors!
