With inflation rising, you’re likely feeling it impact your day-to-day life as prices go up for gas, groceries, and more. These climbing consumer costs can put a pinch on your wallet and make you re-evaluate any big purchases you have planned to ensure they’re still worthwhile. If you’ve been thinking about purchasing a home this year, you’re probably wondering if you should continue down that path or if it makes more sense to wait. While the answer depends on your situation, here’s how homeownership can help you combat the rising costs that come with inflation. During a period of high inflation, both rental prices and home prices rise. Buying a home allows you to stabilize what’s typically your biggest monthly expense: your housing cost. When you have a fixed-rate mortgage on your home, you lock in your monthly payment for the duration of your loan, often 15 to 30 years. Property taxes and insurance may go up slightly, but unlike rents, the monthly housing payment remains the same. So even if other prices increase, your mortgage payment will be a reliable amount that can help keep your budget in check. Additionally, in inflationary times, you want to be invested in an asset that outperforms inflation and typically holds or grows in value. The graph shows how the average home price appreciation outperformed the average inflation rate in most decades going all the way back to the seventies – making homeownership a historically strong hedge against inflation. So, what does that mean for you? Today, experts forecast home prices will only go up from here thanks to the ongoing imbalance of supply and demand. The same for interest rates. If, however, interest rates should fall after you purchase, you can always refinance. Once you buy a house, any home price appreciation that does occur will grow your equity and your net worth. Since homes are typically assets that grow in value, you have peace of mind that history shows your investment is a strong one. If you’re ready and able, it makes sense to buy today before prices and interest rates rise further.