Jun
01
Housing Market





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You’ve heard that home ownership is part of the American Dream, right? A house with a white picket fence, 2.5 kids, a partner, and a dog. “They” – whoever that vague “they” is – say that’s what America is meant to be like.






Now while I’m all for American Dreaming and pulling yourself up by your bootstraps, I believe homeownership is essential for a more important reason.



Stability.






You see, over the past 6 months or so, I’ve watched rent rates skyrocket. In some cities, rent is rising at a faster rate than houses appreciate.






When your lease is up for renewal, in most states, your landlord can increase your rent as much as they want. If you’re incredibly lucky, maybe it’ll go up by $50-100. However, many renters are seeing their monthly payment increase by thousands of dollars per month.






Rentals are quickly becoming unaffordable.






We could say, “We just need to build more rental houses or apartments.”



However, the earth isn’t getting any bigger. In the places where people want to live, land is at a premium.






Millennials are the next generation of homebuyers yet cost of living is outpacing their wages – forcing them to continue to rent. With demand for housing increasing and supply staying the same, rent rates are going to continue to increase.






The only way out of the rent rat race?






Home ownership.






When you buy a home, you own it. Yes, you’re paying a mortgage but your name is on the deed.






You’re collecting equity. You’re gaining wealth.



You now have an asset you can leverage.






There are 3 things you need to survive: food, water, & shelter.






When you own your home, your need for shelter stabilizes. It allows you to spend your money and energy elsewhere. First on food & water. Then on the other things you want in life – family, spirituality, health.






Homeownership means you’ve laid the foundation for building the life you want.






And once you do that, anything is possible.