Luz  A Rodriguez REALTOR DRE 01229566
Your REALTOR for LIFE

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In Life, Only Death, Taxes, and Price Hikes Are Guaranteed - 6/4/2025

Benjamin Franklin famously stated that "in this world, nothing is certain except death and taxes." While his words still ring true, there's another unavoidable reality in modern life: rising costs. From groceries to energy bills, the cost of living continues to climb, and one of the biggest contributors to this is housing.

Housing has always been a major expense for individuals and families, but recent data highlights just how burdensome it can be. According to an article released in September 2024, renters spent a median of 31.0% of their income on housing costs, while homeowners with a mortgage spent 21.1%, and those without a mortgage spent just 11.5%. Despite this, 18.8 million homeowners were still dedicating more than 30% of their income to housing expenses, illustrating that affordability remains a challenge for many.

The long-term trends in housing costs are equally telling. According to the Federal Reserve Economic Data, rent increases have averaged 3.88% annually over the past 60 years, outpacing the average inflation rate of 3.7% during the same period. Meanwhile, the median home has appreciated at an average annual rate of 5.56%, showing that homeownership not only shields against rising rents but also builds wealth over time.

The financial benefits of homeownership extend far beyond escaping annual rent hikes. The latest Federal Reserve Board Survey of Consumer Finance reveals that median homeowners have 38 times the household wealth of renters. This wealth disparity underscores the power of owning a tangible asset like a home, which appreciates in value and provides stability in a world of ever-increasing costs.

While rising home prices and higher mortgage rates may deter some from entering the housing market, it's important to consider the long-term financial advantages of homeownership. Waiting on the sidelines, hoping for prices or rates to drop significantly, could mean missing out on years of equity growth and continued rent hikes.

A significant factor influencing today's housing decisions is mortgage rates. The historically low rates seen before the pandemic were an anomaly, not the norm. The 52-year Freddie Mac average for 30-year fixed-rate mortgages is 7.74%, which is much closer to the rates we're seeing today. For prospective buyers, accepting the current rates as the "new normal" is key to moving forward and securing the long-term benefits of homeownership.

While some individuals are genuinely priced out of the housing market, many are financially capable of purchasing a home but are hesitant due to uncertainty. However, delaying a purchase means continuing to pay rising rents and missing out on the wealth-building potential of owning a home. Even at current rates, the long-term advantages of homeownership—including equity growth, tax benefits, and protection against inflation—far outweigh the costs of waiting.

Death, taxes, and rising costs are life's unavoidable truths, but how you navigate them can shape your financial future. Housing represents one of the most significant expenses for individuals and choosing to own rather than rent can make a profound difference in wealth accumulation and financial security.

While mortgage rates and home prices may feel intimidating, they reflect a long-term norm rather than an exception. For those who can afford to buy now, stepping into the market could be the key to securing stability and wealth in an uncertain world. Don't let hesitation hold you back from building a solid foundation for your future. 

Download the Homeowners Tax Guide.

Luz A Rodriguez DRE 01229566 CRS ABR GRI SFR Probate Certified Green Designatio LA Realty Services -DRE 01330108 Chino, CA (949) 838-4552 DRE 01229566 I have guided sellers through the real estate process for the last 27 years. I have seen the market's ups and downs, short sales, and foreclosures. With my knowledge and experience, I'll make sure you find the best price possible in the shortest time and alleviate any fears or issues. Our exceptional team is always ready to collaborate with you on all the necessary steps, from the initial stages to the final closing. We are fully prepared to serve you! Call me now at 949-838-4552 I love the real estate business and have never lost my strong eagerness to buy and sell real estate. I pledge excellence in real estate services and am called to serve you with integrity and dedication that exceeds your expectations. I have had my real estate license since 1997 and have been both CRS and GRI agents. I also have the NAR designations GREEN and SFR. Experience: Luz A. Rodriguez has been a licensed REALTOR since 1997. She also passed the required loan officer examination in 2010. Her solid experience, more than 26 years in marketing and sales, gives her an edge in selling your home or buying a property. She is proficient in writing and negotiating contracts, which will help her do things right from start to finish. Commitment and Dedication: Luz is a full-time agent dedicated to the profession, active in the local market, and committed to providing exceptional service. Luz is honest, reliable, professional, and ethical. Education: Luz graduated from St. Paul's College in Manila, Philippines. She has obtained various certifications and designations related to specialized real estate transactions. She strives to stay informed in a constantly changing environment by attending workshops, webinars, and seminars, both live classes and through the Internet. She is committed to providing quality service and representation on behalf of clients. Communication: Luz prioritizes regular communication with clients. She employs modern technology to stay in touch with them. She believes that communication is the most important ingredient in any successful relationship. You will never have to say, "I never heard from my agent." My Credentials and Designations are as follows: * Certified Residential Specialists (CRS) * Accredited Buyer"s Representative (ABR) * Graduate of Real Estate Institute (GRI) * Certified Distressed Property Expert (CDPE) * Accredited Buyer's Representative (ABR) * Short Sale & Foreclosure Resources (SFR) NAR Designation * Home Affordable Foreclosure Alternative (HAFA) * Certified Probate Real Estate Specialists (CPRES) * NAR's Green Designation (Green) NAR Designation Contact Me Visit my Website Send a Referral Subscribe to Newsletter