Inflation is a headlining topic right now, as our nation breaks 40-year economic precedents in reaching its highest numbers since 1982. There’s an industry to invest in, however, that can help you guard against the financial effects of inflation: real estate.
Innumerable daily investments have risen high in price over the last few months. Among food pricing, a 6.3% surge charges the average American an additional $24 monthly. Additionally, a 49.6% increase in gas prices, 29.3% increase in energy expenses, and 7% increase on the overall price of items make the real estate a stable star with mortgage rates remaining fixed.
Like many industries, real estate suffered the pandemic-induced supply chain shortages that are largely attributed to our current inflation. International halts on production put the national housing inventory at an unprecedented low in April of 2021 and supply shortages prompted an increase in construction material prices. Deman for housing, however, does not ebb and flow with the whims of inflation, and as a result, projections for the real estate market are immaculate.
Among home sales, a 6.6% increase in predicted for 2022, alongside a 2.9% increase in appreciation. Projections also point to commercial real estate more specifically as a place for investment, as it presents itself as a promising long-term investment and has shown a mere 1% increase in inflation during this economically volatile time.
Explore the windows of financial opportunity that real estate could open for you and ensure that while our nation’s prices grow, your money does too.