The Good News For Homeowners About Inflation

Performance Property Real Estate Question

Q: I hear a lot of talk about inflation lately.  How will inflation affect homeowners like me? Mike, Rutherford, NJ

A: Yes, the pandemic has had a big impact on economies worldwide and has resulted in much higher consumer prices for many items.  The good news for homeowners is that historically, real estate has been a great hedge against inflation.  In the 1970s when inflation was high, home prices outperformed consumer prices.  Since the 70s, home price growth has matched or exceeded consumer price inflation.  This is good news for homeowners because the appreciation of the value of your home, which for most people is by far their most valuable asset, in the long run is much more important than how much you have to pay for gas or toothpaste.  Thanks for your question, Mike.

For more real estate tips and information visit my blog at