How Do You Beat Inflation? Here’s How Real Estate Will Benefit You

How can you beat inflation? 

Ryan Haley, broker and owner of Atlantic Shores Sotheby’s International Realty, suggests buying real estate. Here’s a quick perspective of how it will benefit you. 

Time and time again, over the last four decades, we have seen real estate used as a hedge against inflation. That means that the home price appreciation has consistently outpaced the inflation rate. 

Real estate beating inflation has been true even way back in the 1970s when the inflation rate was at its highest at 7.1% for the decade. Back then, we saw home prices appreciate by 9.9%. 

Now, fast-forward to 2010s, we saw inflation to be very low at 1.8%, while home price appreciation was at 4.9%. 

In 2020 when the inflation rate was at 1.4%, home prices increased by 9.2%. In 2021 with a higher inflation rate of 6.8%, home prices went up 18%. 

Thus, one of the consistent ways to win when it comes to inflation is by buying real estate. 

If you want to discuss or learn more about this and other real estate-related topics, do get in touch with us, and we’ll be happy to talk with you.