Infographics

Real Estate: The Hedge Against Inflation

Inflation is currently at its highest rate since 1982. This is due mostly to the pandemic which caused global shutdowns and supply chain issues throughout the world. This supply chain blockage affected cat and home inventory, and construction materials to produce these products skyrocketed in price. 

 

Building a home obviously requires lots of materials. Over the pandemic, the cost of these materials were raised exponentially due to the supply chain breakdowns. The price of lumber alone rose 114%! Labor costs were also increased due to the worker shortage that the country was experiencing. When stimulus checks were distributed, consumers began spending more money on goods rather than services which continued to contribute to inflation and prices to rise. 

 

In these uncertain times, one industry seems to act as a hedge to protect people against rising prices and inflation rates:

real estate

 

Real estate has traditionally acted as a hedge against inflation for investors. This is because rental income increases with property values, values rise with inflation, and yet mortgage rates remain fixed. In 2020 and 2021 America saw the largest amount of homes sold since 2006! In 2021 alone, over 6 million homes were sold and the Case Shiller US Home Price Index rose almost 19%.

Related Post

 

As the pandemic continues, housing inflation and real estate depend on coming policy changes. It is expected that demand for goods and services will balance which would ease the pressure on supply chains. Production could slowly recover, but for the time being the price for building materials remains high. With lumber and steel prices still remaining high, there are less people looking to build homes and more looking to buy pre-existing homes from a market of excited sellers. The predictions for 22 show an expected 6.6% increase in home sales and a nearly 3% increase in appreciation. 

 

Real estate could be a safe bet to hedge against inflation. Learn more about the real estate market post-pandemic in the infographic below: 

Via LuxurySoCalRealty

Brian Wallace

Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency based in Louisville, KY and Cincinnati, OH which works with companies that range from startups to Fortune 500s. Brian also runs #LinkedInLocal events nationwide, hosts the Next Action Podcast, and has been named a Google Small Business Advisor for 2016-present.

Share
Published by
Brian Wallace

Recent Posts

School of Crypto? TMS Network’s (TMSN) Community Inspires Rising Number of Investors, EOS (EOS) and ApeCoin (APE) Fall Through the Bank

TMS Network (TMSN) stands out as a disruptor, currently making huge gains in its fourth…

9 hours ago

Savvy Investor’s Cheat-Sheet: TMS Network (TMSN) over Mask Network (MASK) and ApeCoin (APE)

TMS Network (TMSN) emerges as the savvy investor favorite having raised $6 million since the…

9 hours ago

Crypto experts asked Google Bard about Shiba Inu and Tradecurve the answers are surprising

The current crypto industry is filled with speculation and anticipation as investors continuously seek insights…

10 hours ago

Best Cryptocurrencies to Buy in Now: Chainlink (LINK), Polkadot (DOT) and HedgeUp (HDUP)

Choosing which cryptocurrencies to invest in can be a daunting task given the multitude of…

10 hours ago

TMS Network (TMSN) Rips Through Resistance, Dogecoin (DOGE) and Aave (AAVE) Left Shredded

As the bull season takes a haltering break, there’s one crypto that’s ripping through the…

2 days ago

TMS Network (TMSN) Flexes Its Muscles, BNB (BNB) And Wrapped BNB (WBNB) Face Limited Gains

It’s amazing how quickly things can change; just when everyone thought Binance and its BNB…

2 days ago