369 These Numbers Are Crazy. Real Estate vs Cost Of College | Daily Show Up
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In today's episode of Daily Show Up Darin delves into a different topic - real estate, college expenses, and investing in the stock market. Darin analyzed the numbers from different perspectives and drew some intriguing conclusions. Join Darin as he explores the data and discovers surprising insights.
1. Real Estate Appreciation:
In Q4 1981, the average cost of a single-family home was $83,700.
Fast forward to Q1 2023, the average price of a home reached $516,500.
This translates to a 4.54% appreciation rate over 41 years, suggesting real estate's steady growth.
2. College Expenses Soar:
Comparing college costs between 1981 and 2022 reveals a significant increase.
3. Real Estate vs. Inflation:
Real estate is often considered a safe investment, staying ahead of inflation rates.
Over the last 41 years, the average inflation rate was 3.8% per year
4. S&P 500: A Strong Contender:
The S&P 500 has outperformed real estate with an 11.29% rate of return since 1981.
After analyzing the data, it becomes evident that real estate continues its steady growth over the years, aligning closely with inflation rates. Although the S&P 500 boasts a higher rate of return, real estate's leveraging advantage makes it a strong investment option. On the other hand, college expenses have skyrocketed, raising questions about the value of a college education and the burden of student debt. Ultimately, investors must consider these factors carefully to make informed financial decisions.
Note: The data used in this episode was sourced from credible institutions such as Fred, EducationData.org, and WorldData.info.
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