Fox Business ran an article about the average cost of an American home over the decades. The bottom line was appreciation and inflation. It made me think back to the homes and investment properties that I’ve purchased over the years. Every one of them felt like a lot of money, and I remember wondering if the market could go any higher. Looking back, I wish I could go back and buy again at the prices I had previously paid.
That’s what inflation does, and that’s what makes real estate such a unique investment—you get to capture 100% of the inflation and appreciation even when you finance the property. A 10% down payment turns 5% appreciation into a 50% return on your investment! Even as prices feel high right now, I think we’re all going to wish we could go back to 2024 prices a few years from now.