The past few weeks have again proven one thing that all the pundits who suggest renting instead of owning never, ever mention:

(1) building equity

(2) home-stability

(3) quality-of-life, etc.

A fixed-rate mortgage is akin to personally activated 'rent' control, and more importantly, it's a significant inflation-fighter. Let me elaborate:

• If many Americans are spending around 30% of their incomes on rent or housing, we have to be 100% certain that when housing costs rise, so too does inflation.
• The shelter category of the CPI, which includes housing costs, remains a stubbornly large contributor to inflation overall. In August, shelter increased 0.5% month-over-month and 5.2% compared to 2023, making it the primary factor in the all-items index's increase.
  
• A fixed monthly mortgage payment never rises. Yes, insurance costs will rise, but most renters pay some insurance too. Maintenance/repairs costs and real estate taxes will rise inevitably too. But that mortgage payment is usually the largest of all monthly costs....and it remains fixed for 30 years.
• If inflation goes to a 'normal' rate of around 2% - it's close already - a $3,000 per month mortgage payment will be akin to a valuation of around $1,700. ie: that monthly 'rent' payment of $3,000 will be akin to $1,700....
• If you were renting for $5,000 per month - factoring in the additional costs a landlord incurs for maintaining a rental property and real estate taxes - that figure rises to over $9,000 per month....at a 2% inflation rate.
• While compounding interest beats up renters, compounding paying down of a mortgage builds equity. At the end of the 30-year period that $500,000 home should be worth around $900,000.....at a 2% inflation rate.
• Even if inflation is zero, or repairs and maintenance costs are high, if the home is worth $400,000 - $100k less than what you bought it for - you STILL have $400k worth of equity.
• After 30 years of principal and interest payments, that monthly cost then becomes......ZERO.
• If all owned instead of rented, what would our overall inflation figures look like if rising rents did not factor into the numbers?
• If all retirees owned a home, might that solve - at least in part - the disturbing lack of retirement savings so many have, reducing their reliance on social security?