As home values continue to soar, it’s easy to see why staying in your home and improving it as needed is the best investment.
One measure of home prices in 20 U.S. cities jumped 18.4% in October 2021. And Zillow, a real estate app, predicts that home values across the U.S. will surge 14% through November 2022.
To put this into perspective, a home currently valued at $500,000 will gain an extra $70,000 by November 2022, if Zillow’s 7-month prediction is on point. That’s a monthly average of $10,000 in equity building.
The national average cost of long term care in the U.S. is $4,500 per month. So over the same 7-month period predicted by Zillow, the cost would be $31,500. Looking at this comparison, it’s clear to see why staying in a home for as long as possible is a better choice over, for example, living in an assisted living community.
After years of soaring home prices, stock market volatility, and inflation concerns, plus rises in the cost of raw goods and materials, there’s a sense of serenity knowing that one’s home can pay you back over time. By improving your home now, you also save on the higher cost of goods in the future.
This is not just a short term trend. As wages continue to rise, home buyers can continue to pay more.