Blog > How Does Inflation Affect the Real Estate Market?
Inflation impacts real estate by influencing interest rates, construction costs, and consumer purchasing power. As inflation rises, lenders often increase mortgage rates to offset risk, which can cool buyer demand. On the other hand, real estate is often seen as a hedge against inflation—property values and rents tend to rise over time. Investors and homeowners benefit from holding tangible assets that appreciate while fixed-rate mortgage payments stay constant, effectively outpacing inflation.
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