Inflation is still up in Kansas City - If you are renting, should you even consider buying a home?

The Federal Reserve has been trying to curb inflation by increasing the interest rate and the latest news shows that it is not curbing inflation. The recent information about inflation remaining high despite the efforts of the Federal Reserve increasing rates has seen some recent changes in the stock market. It has fueled speculation from many about a recession. 

By now you probably feel inflation's effects when you go to the grocery store or a restaurant. Plainly put, you are paying more today at the store than you were last year. At the end of the month, you are probably thinking of putting your plans of buying a home on the back burner, right? If you really think this, here is what you should know.

The best hedge against inflation is owning a home.

During inflationary times, homeownership is a great hedge against rising costs because you have locked in the payment of one of your largest monthly payments. And not for just a year, but during the course of the loan. What do you think will happen to your rent during the next 5 years?

James Royal, Senior Wealth Management Reporter at Bankrate, explains:

When inflation rises, so do rents. What better way to stabilize one of your largest payments during the month than owning a home. Rents are going to rise and we have seen some of the biggest comings.  Lawrence Yun from the National Association of REALTORS explains what happened to rents in the latest inflation report with rents that renewed:

When you rent a home, your monthly rent payment is determined by your lease, which renews typically on a yearly basis. With the rising inflation, landlords have started to increase the monthly rents in renewed leases. 

In a survey on REALTOR.com of current landlords, 72% of the landlords planned to increase the rent payment in the new lease.

Bottomline:

The best hedge against inflation in Kansas City is to stabilize your monthly housing expense. Need help on your path to homeownership, contact the Dowell Family Team today.

More Resources:

Did you know that you can up to 10% of your current rent applied toward the purchase of a house? - Home Buyer Program

Top 10 reasons why you should consider buying a home in Kansas City - Top 10 Reasons