Latest posts by Randolph Taylor (see all)
- Chicago Firms Form Venture To Invest $1.5 Billion in Single-Family Rental Homes - January 11, 2022
- No End in Sight Yet for Higher Home Prices - January 11, 2022
- Demand for Apartments Fuels Strong Start to the Year for Freddie Mac - January 11, 2022
- Signs of Inflation Starting to Appear
- Many essential production materials remain in short supply due to pandemic driven slowdowns
- The economic reopening unlocked pent-up disposable income to limited supply of products, pushing prices up
- While rapid inflation is concerning, real estate investments have historically been strong hedges against inflation
- Rising Rents Help Real Estate Stave Off Inflation
- Long-term leases typically have inflation escalation clauses that lift rents based on an inflation measure
- Apartment rent growth outpaced inflation the past 10 years as rents are typically realigned with lease renewals
- Inflation Incited Appreciation Can Benefit Investors
- Inflation drives up rents, which raises property values
- Since real estate investors often use leverage, their return on the capital they put up is amplified
- Real estate can serve as one of the better investments to ride the current bout of inflation
