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BiggerPockets Real Estate · January 20, 2023 · 44m

Why Real Estate Is the Ultimate Inflation Hedge

Dave Meyer

Meyer explains why real estate outperforms stocks, bonds, and gold as an inflation hedge: debt is fixed, rents rise with inflation, and property values track replacement costs.

Canon

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Real estate provides meaning through tangible responsibility — you can see, touch, and improve your investment
Meyer reflects on why real estate investors report higher satisfaction than stock investors: you can physically improve a property, house real families, and see the impact of your investment decisions.
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Highlights

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Fixed-rate debt is a bet against the value of the dollar — and inflation makes that bet pay off
Meyer shows that a fixed-rate mortgage becomes cheaper in real terms as inflation rises. A $2,000/month payment in 2024 dollars will feel like $1,400 in 2034 dollars at 3.5% inflation.
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