I recently saw an article which stated that for homeowners “their houses are like piggy banks.” But if you own your house, an increase in its value doesn’t seem to help you in any real way, since to realize that gain you’d have to sell it. But then you’d have to buy or rent another place to live, which would also cost more. It seems like the only concrete effect of a rising housing market for most homeowners is an increase in their insurance costs. Am I missing something?
In: 1833
Many people who live in high cost areas rely on the rising value of their homes as an investment that they can monetize by selling and relocating somewhere cheaper.
The dream is to buy a house for $300K in NYC in 1982, sell it for $3 million in 2022 and retire to Florida.
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