Why Real Estate Remains a Smart Investment Despite Economic Shifts and Election Cycles

As election day unfolds, strong opinions, predictions, and even a few gloomy economic forecasts are likely to follow. And, as always, housing seems to be at the center of these discussions. But if history has shown us anything, it’s that no matter the political shifts, real estate consistently stands strong as a wise investment.

For over two decades, we’ve weathered significant challenges: the Great Recession, market corrections, policy shifts, and a global pandemic. Yet, even as some voices predicted doom, home prices held their ground. For those pursuing the American dream of homeownership, real estate has remained a solid choice. If you’re already a homeowner looking to upgrade, downsize, or simply secure your investment, let the facts—not the noise—guide your next steps.

Real Numbers Tell the Real Story

Since 1965, home prices have risen by more than 2,000%, soaring from around $20,000 to about $420,000 today. To put it in perspective, while incomes have grown at an annual average of 4.22%, housing has increased in the 5-6% range—far outpacing inflation and income growth. Even adjusted for inflation, home values have grown over 13 times faster than incomes, illustrating the long-term strength of real estate as an asset.

If that seems like ancient history, let’s zoom in on recent decades. Since 1999, through seven presidential elections, home prices have surged by 209%, weathering major events like 9/11, the Great Recession, and a rise in tech-driven economies. Through it all, housing has proven to be a reliable and profitable investment.

Real Estate in the Last Eight Years: A Closer Look

Even the last few years demonstrate the resilience of housing. Since 2016, despite inflation and rising interest rates, home prices have climbed 17% when adjusted for inflation. In this period alone, housing has shown it can withstand economic ups and downs, making it a stable asset amidst uncertain times.

Why Real Estate is More Than an Investment

Unlike stocks or cryptocurrencies, a home is more than a line item in a portfolio; it’s a place to live, grow, and build a life. While the volatility of other investments can add excitement, it can also bring stress and unpredictability. Housing, however, is tied to something real and tangible—a place to call home.

So yes, today’s election matters, but history tells us that housing performs well regardless of who holds power. Both Republicans and Democrats have overseen periods of growth in the real estate market. Every time a client says, “I’ll wait and see,” they risk missing out on gains that others have historically enjoyed. Inflation may be a factor, and mortgage rates might look high, but these are not new obstacles. Waiting can mean missing the opportunity for future growth.

The Bottom Line

Over the long term, real estate has proven itself as a resilient and rewarding investment. So whether you're buying your first home, upgrading, or just seeking to secure your investment, don’t let the headlines distract you from the data. Housing is stable, valuable, and, most importantly, provides a place to call your own.

P.S. When mortgage rates eventually drop, buying will only become more competitive. Waiting could make things harder—not easier.

Final Thought: The housing market has shown remarkable strength no matter who’s in office. Focus on the real numbers, embrace the stability of real estate, and make decisions that benefit your future, beyond the noise of today’s election cycle.