Buying A House During Inflation: What You Need To Know

During periods of high inflation, the prices of essentials like groceries, gas, and housing increase.

However, the primary driver behind your decision to purchase a home should be whether the timing is right for you and your particular financial situation, rather than the overall state of the economy or inflation.

In this article, we'll examine what happens to house prices during inflation, explore the pros and cons of buying a home when prices rise, and provide tips to help you make a successful purchase.

While buying a home during high inflation may seem daunting, careful planning and consideration of your personal circumstances can still make it a smart long-term investment.

What Happens To House Prices During Inflation?

The price of just about everything tends to increase when inflation is rising. Houses are no exception.

Home prices steadily rose in recent years. According to the Federal Reserve Bank of St. Louis, the median sales price of existing homes in the U.S. was $407,600 as of May 2024. In May 2023, the median sales price of existing homes was $396,500, so the price jumped by a little more than $11,000 year over year.