When it comes to investing, we all want to make the smartest choice possible. We’ve all heard that age-old advice: “Invest in what you know.” For many of us here in St. Louis, what we know best is our homes. But how does investing in a home stack up against other common investments? Let’s take a look at the data below and find out.
Over the past two decades, the price of gold has skyrocketed by a whopping 786.57%, leading the pack with an annualized increase of 9.71%. While that’s impressive, not all that glitters is gold. Houses have also seen a significant increase, with home prices rising by 185.82% over the same period, resulting in a solid annualized increase of 4.54%. Compare this to the modest 23.15% increase in the salary of our hard-working Members of Congress, who seem to be getting less of a raise than the price of a gallon of gas! It’s clear that real estate remains a strong contender.
What’s more, investing in a home offers more than just financial returns. Unlike gold or gas, your home provides a place to live, memories to create, and a community to be part of. And let’s face it, you can’t host a barbecue in a pile of gold bars. Meanwhile, the price of a loaf of bread has actually decreased by 1.01%. So, while bread might be cheaper today than it was in 2000, it’s safe to say it won’t be replacing real estate in your investment portfolio anytime soon.
In conclusion, while the data shows significant growth in various sectors, investing in a home continues to be a wise and stable choice. It not only holds its value well over time but also offers unmatched personal and emotional benefits. So, whether you’re a first-time buyer or looking to sell and upgrade, remember that investing in St. Louis real estate might just be the best decision you’ll ever make.
Annualized Price Changes from 2000 to 2024 for Various Goods and Services
