Is Inflation Bad for Real Estate: How Does High Inflation Affect Real Estate

In times of high inflation, real estate tends to rise. In times of deflation, real estate tends to fall. The current trend of inflation will likely cause homes prices to rise over the next few years.

May CPI numbers were released showing inflation was at 84% with a 6% rise excluding food and energy. Rents rose at an annual rates of 7-8% and home prices rose at an inflationary rate of about 8% which is close to current annual rates. There is currently nothing showing that inflation could crash the housing market.

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