With fluctuating interest rates, economic uncertainty, and rising home prices, many people are asking the question: Is homeownership still a good investment? Despite the many obstacles and challenges, the answer remains a resounding YES. Whether you’re a first-time buyer or considering investing in real estate, here are five reasons why homeownership remains a smart financial move.
1. Building Equity
One of the most compelling reasons to own a home is equity. Unlike renting—where your monthly payments go toward your landlord’s wealth—homeownership allows you to build equity with every mortgage payment. Your net worth grows as you pay down your loan and as the value of the property appreciates.
In markets like Snohomish County, home values have steadily increased over the years. According to NAR Research, home prices have appreciated 49.5% in Washington State since Q1 of 2020. Even during economic slowdowns, long-term trends show that real estate remains a solid investment, with home prices historically outpacing inflation.
2. Protection Against Rising Rents
Renting may seem like the easier option in the short term, but it comes with one major drawback—rising costs. Rental prices in Washington, including Snohomish County, have consistently increased over the years, often outpacing wage growth.
When you buy a home, you lock in your monthly mortgage payment (assuming it’s a fixed-rate loan). This provides stability and predictability to a crucial area of one’s finances. Moreover, as time passes, inflation makes your fixed mortgage payment feel smaller, while rent continues to rise.
3. Tax Advantages
Owning a home comes with several tax benefits that renters don’t get to enjoy. Some of the most valuable tax perks include mortgage interest deductions, property tax deductions, and potential capital gains tax exclusions when selling a primary residence. These tax breaks can save homeowners thousands of dollars per year, making ownership even more financially beneficial.
4. A Hedge Against Inflation
In recent years, inflation and the sinking cost of the US dollar has been an increasingly relevant issue. Real estate remains one of the best hedges against inflation. While costs of goods and services rises over time, so do home values and rental rates. Locking in a fixed mortgage cost can be highly beneficial as homeowners see increasing property values.
“Homeownership is one of the best ways to protect yourself against inflation,” said SCCAR President Jenell Stelts. “While rents continue to rise, locking in a fixed mortgage allows homebuyers to stabilize their housing costs while building equity.”
5. Financial Stability & Freedom
Beyond financial benefits, homeownership provides stability and control over your living situation. As a homeowner, you have the freedom to:
- Renovate or customize your space to fit your needs
- Avoid rent increases and landlord restrictions
- Create a sense of community and long-term belonging
For families, homeownership provides a stable environment, especially for children, who benefit from staying in the same school district and neighborhood over time.
Thus, despite market fluctuations, homeownership remains one of the most powerful wealth-building tools available. It offers a host of benefits – including financial security, long-term appreciation, tax benefits, personal stability, and more.
For those considering buying a home in Snohomish County, the key is to focus on long-term benefits rather than short-term market trends. By choosing a home that fits your financial goals and lifestyle, you can make a smart investment that pays off for years to come.
If you’re thinking about making the move to homeownership, now is the time to explore your options, understand your financing choices, and start building toward a more secure financial future. That’s why choosing a REALTOR® is so important. REALTORS® are highly trained professionals who know the ins and outs of the market and stand ready to serve their clients and secure them the best deal possible.
For more information about buying or selling a home, be sure to work with a REALTOR®, a member of the National Association of REALTORS®. Snohomish County Camano Association of REALTORS® is the voice for real estate in Snohomish County. If you have questions for The Expert about real estate email us at [email protected], or visit www.sccar.org for more information.
