Real Estate is THE Best Investment?

When it comes to building wealth and securing your financial future, few assets rival real estate. Unlike stocks, bonds, or cryptocurrencies, real estate offers tangible value and long-term stability. It has always had a need so long as people have existed. It is also one of the easiest assets to purchase using debt. People who use their money to invest in real estate will tell you that real estate is the best investment, and there are tons of reasons why.

1. Real Estate Is Scarce

“Buy land- they’re not making it anymore.” This well known quote has truth to it. Land is a finite resource. As populations grow and areas expand, the availability of desirable property becomes increasingly limited. This scarcity drives value upward over time, making real estate a fundamentally strong investment. Plus, as population grows it isn’t just housing. There will need to be more land used for farming and other agricultural needs. But despite this demand increase, we cannot create more land, proving that land is scarce and finite.

2. High Demand from Homeowners and Investors

People will always need a place to live. Whether it’s a primary residence, rental property, or commercial space, demand for real estate is constant. Homeownership remains a key life goal for most people, while investors seek properties for income and appreciation. This means that regardless of lifestyle changes, whether people start to prefer renting over buying, demand will remain as investors will still be purchasing real estate.

3. A Natural Hedge Against Inflation- The best investment?

Inflation erodes the value of money, but real estate tends to move in the opposite direction. Property values and rental income often rise with inflation, making real estate one of the best assets to preserve purchasing power. In short, inflation is caused by too many dollars chasing too few of goods. This shift means that people have more dollars than they know what to do with, and the top asset that people choose to spend it on is real estate. The proof is in the data- the number one contributor to the CPI is housing. As a result, many investors turn to real estate during inflationary periods for its ability to maintain and grow wealth.

4. A Universal Need

Regardless of economic cycles, technological changes, or global events, people will always need shelter. Real estate fulfills a basic human necessity, which makes it less vulnerable to market volatility compared to other investments. The need for housing makes it less likely to be “panic sold” during economic downturns, helping to keep prices stable. As long as people are around, we will need a place to live!

5. The most accepted use of Debt- Real estate as an investment

Most financial experts will agree that most debt is risky to use and that only highly knowledgeable people should consider using it to build wealth. Real estate is one of the easier ways to use debt because when you get a fix loan (which most are) they are often not callable, meaning if your value drops you must pay off the loan to keep the asset. All of your mortgage payments are precisely laid out for you on the day you close, and so long as you don’t fall behind on your payments then there won’t be many surprises. As a result, it’s one of the few investments that financial experts are ok with consumers using debt to buy. Even Dave Ramsey, debt’s most hated person, is fine with people taking on mortgages so long as they do so responsibly.

Bottom Line: Real estate combines scarcity, consistent demand, inflation protection, and universal necessity into one powerful investment vehicle. Whether you’re looking for long-term appreciation or steady cash flow, real estate offers a proven path to financial security. Call Steven Johnson, a realtor with Coldwell Banker Realty, to get started on your next real estate purchase (847) 525-6121