{"id":138580,"date":"2021-06-14T13:30:00","date_gmt":"2021-06-14T19:30:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=138580"},"modified":"2023-03-29T01:30:12","modified_gmt":"2023-03-29T07:30:12","slug":"investing-prepare-inflation","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/investing-prepare-inflation","title":{"rendered":"Inflation Is Coming\u2014Here&#8217;s How to Prepare (And Invest!)"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC8661083692&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;We are seeing substantial inflation,&#8221; <a href=\"https:\/\/finance.yahoo.com\/news\/warren-buffett-we-are-seeing-substantial-inflation-and-are-raising-prices-220539307.html?guccounter=1&amp;guce_referrer=aHR0cHM6Ly9hcHAuYXNhbmEuY29tLw&amp;guce_referrer_sig=AQAAAASyBgr9t--SodT3MTYTqoa5FgY08wRylf4x8NwcLbIKMjc_QycNREASX5ccvKYcdw-if6JYS_cNxH6V-XUQuaeJ15EhZ6u20lhPkFUcTc7BCErs3tcZjL3BLAzjUDEeaF3XsalEaQmJ7t00kJVg4p_8czvu20GCEO0CId9LlLyD\" target=\"_blank\" rel=\"noopener\">announced Warren Buffett<\/a> at his company&#8217;s recent annual shareholder&#8217;s meeting. &#8220;We are raising prices. People are raising prices to us, and it&#8217;s being accepted.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Buffett didn&#8217;t seem overly concerned because his companies can pass higher prices onto consumers. The stock market took the news with a grain of salt as well.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Why isn&#8217;t inflation\u2014or the fear of inflation\u2014having its normal effects on the markets? Typically, news of inflation spooks the market, triggering sell-offs as investors anticipate a slowdown in business, eventually denting the bottom lines of their portfolio companies and their associated stock prices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, that hasn&#8217;t happened so far. Why? Because of the stimulus.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stimulus-fueled demand is bolstering both the economy and the stock market right now, but many economists don&#8217;t expect that to last. <a href=\"https:\/\/fortune.com\/2021\/03\/26\/fourth-stimulus-check-covid-relief-biden-congress-direct-payments\/\" target=\"_blank\" rel=\"noopener\">Many don&#8217;t expect another stimulus check<\/a>, and all the new money that&#8217;s been pumped into the economy the past year will finally come to roost in the form of inflation, resulting in slowing consumer demand and a stock market correction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In any other year or period, the Fed would typically step in and raise interest rates to cool the economy and corral runaway high prices. However, with its announcement last year of its new about-face policy to keep interest rates low\u2014even in the face of inflation\u2014it is too early to know if the Fed will do anything about rising inflation in the current environment. The concern is that if and when the Fed decides to step in to slow inflation, <a href=\"https:\/\/www.bloombergquint.com\/opinion\/federal-reserve-may-not-recognize-inflation-until-it-s-too-late\" target=\"_blank\" rel=\"noopener\">it will be too late<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inflation or not, sophisticated investors never wait around for the shoe to drop. They&#8217;re prepared for inflation in 2021 because they&#8217;re always prepared for inflation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n  <div id=\"posts_lists-block_60c0f3056b298\" class=\"  my-10\">\n    <div class=\"\">\n      <!-- Column One -->\n      <div>\n                  <h2 class=\"mt-0 mb-1 js-toc-ignore\">\n            More about inflation from BiggerPockets          <\/h2>  \n                  \n        \n        \n        <div class=\"grid grid-cols-1 gap-y-4 lg:gap-y-7 mt-5\">\n          \n<article \n\tid=\"post-129405\" \n\tclass=\"content-card mb-0 flex flex-col  post-129405 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/investor-understand-inflation\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"338\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/08\/inflation-dollar-value.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"What Every Investor Should Understand About Inflation\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/08\/inflation-dollar-value.jpg 830w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/08\/inflation-dollar-value-300x200.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/08\/inflation-dollar-value-768x511.jpg 768w\" sizes=\"auto, (max-width: 338px) 100vw, 338px\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">8 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/bp-wp-migration.s3.amazonaws.com\/author_avatars\/2444.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2020-09-13T15:00:23-06:00\">Sep 13, 2020<\/time><time class=\"updated\" datetime=\"2021-03-16T17:02:58-06:00\">Mar 16, 2021<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/jscott-2\" class=\"no-underline line-clamp-1\" target=\"_blank\">J Scott<svg class=\"h-5 inline ml-2\" viewBox=\"0 0 21 21\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><g clip-path=\"url(#a)\"><path d=\"M19.253 5.25a1.75 1.75 0 0 0-1.663 2.29l-1.42.902a2.188 2.188 0 0 1-2.868-.46L11.91 6.28a1.73 1.73 0 0 0 .342-1.03 1.75 1.75 0 1 0-3.5 0c0 .37.12.732.34 1.03L7.701 7.982a2.188 2.188 0 0 1-2.868.46l-1.42-.903a1.75 1.75 0 1 0-1.816 1.203l1.035 6.205a.438.438 0 0 0 .43.366H17.94a.437.437 0 0 0 .431-.366l1.035-6.204a1.75 1.75 0 0 0-.153-3.494Z\" fill=\"#FFC107\"\/><path d=\"M10.502 17.064c4.108 0 7.438-.98 7.438-2.188 0-1.208-3.33-2.188-7.438-2.188-4.109 0-7.439.98-7.439 2.188 0 1.208 3.33 2.188 7.439 2.188Z\" fill=\"#FFA000\"\/><path d=\"M10.502 17.501c-3.915 0-7.877-.901-7.877-2.625s3.962-2.625 7.877-2.625c3.914 0 7.876.9 7.876 2.625 0 1.724-3.962 2.625-7.876 2.625Zm0-4.375c-4.597 0-7.001 1.137-7.001 1.75s2.404 1.75 7 1.75c4.597 0 7.002-1.138 7.002-1.75 0-.613-2.405-1.75-7.001-1.75Z\" fill=\"#FFD54F\"\/><\/g><defs><clipPath id=\"a\"><path fill=\"#fff\" d=\"M0 0h21v21H0z\"\/><\/clipPath><\/defs><\/svg><\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/investor-understand-inflation\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tWhat Every Investor Should Understand About Inflation\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Inflation means an increase in the price of goods and services\u2014but is that a bad thing? Here&#8217;s what inflation really means for investors.<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"js-comment-count text-slate text-opacity-80\" data-post-id=\"129405\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-129405 -->\n<article \n\tid=\"post-137417\" \n\tclass=\"content-card mb-0 flex flex-col  post-137417 post type-post status-publish format-standard has-post-thumbnail hentry category-biggerpockets-daily category-real-estate-news\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/inflation-increase-2021\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"332\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/04\/inflation-investors-560x380.png\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Inflation Is Rising\u2014What Does That Mean for Investors?\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/biggerpockets-daily\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">BiggerPockets Daily<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">3 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/bp-wp-migration.s3.amazonaws.com\/author_avatars\/108611.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2021-04-14T09:53:54-06:00\">Apr 14, 2021<\/time><time class=\"updated\" datetime=\"2023-03-29T08:57:27-06:00\">Mar 29, 2023<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/davemeyer-2\" class=\"no-underline line-clamp-1\" target=\"_blank\">Dave Meyer<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/inflation-increase-2021\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tInflation Is Rising\u2014What Does That Mean for Investors?\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Mortgage may remain stable, but there are more considerations afoot\u2014like rising inflation. How do these concerns affect investors? Should you adjust your strategy?<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"js-comment-count text-slate text-opacity-80\" data-post-id=\"137417\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-137417 -->\n<article \n\tid=\"post-96043\" \n\tclass=\"content-card mb-0 flex flex-col  post-96043 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/rising-inflation\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"163\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/06\/property-management-contract.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"3 Consequences to Expect in the Face of Rising Inflation\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/06\/property-management-contract.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2016\/06\/property-management-contract-300x144.jpg 300w\" sizes=\"auto, (max-width: 340px) 100vw, 340px\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/all\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">All<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">3 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/bp-wp-migration.s3.amazonaws.com\/author_avatars\/265133.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2018-01-24T15:06:28-07:00\">Jan 24, 2018<\/time><time class=\"updated\" datetime=\"2021-03-16T13:48:10-06:00\">Mar 16, 2021<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/gusross\" class=\"no-underline line-clamp-1\" target=\"_blank\">Gus Ross<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/rising-inflation\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\t3 Consequences to Expect in the Face of Rising Inflation\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">The markets are a fascinating monster to watch. Studying market cycles and history of market crash periods can help any investor grasp risk exposure.<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"js-comment-count text-slate text-opacity-80\" data-post-id=\"96043\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-96043 -->        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n\n  \n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Invest for demand<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Some goods and services are demand-inelastic (meaning a rise in prices won&#8217;t impact demand) because they&#8217;re essential. People will always need shelter, food, transportation, fuel, medical care, etc. Rising prices don&#8217;t necessarily result in a drop in demand for these goods and services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Warren Buffett is not concerned about inflation right now because consumer demand is sky-high across the board. Still, when stimulus money runs out and reality hits, consumers will cut back on spending on non-essential goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Great Recession and the COVID-19 downturn of 2020 proved that specific segments, like affordable multifamily and mobile home parks (MHPs), are recession-resistant within real estate. Already in short supply, demand for multifamily and MHPs will only rise in an inflationary environment where consumers look to downsize.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investing in properties with rents that rise in step with inflation without a decline in demand is the ideal counter to rising prices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Long-term income over short-term rehabs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Investing for income long-term instead of thinking short-term with fix-and-flips will ensure consistent, reliable income independent of the underlying value of the property. While the housing market is currently experiencing unprecedented demand, this may cool with inflation as well\u2014along with a slowing economy and stock market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since single-family housing is the real estate sector most correlated to the broader market, wise investors turn to less correlated commercial properties like multifamily, MHPs, or senior housing to insulate against potential downturns.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Free Real Estate Webinars<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:16px\">Shortcut the learning curve by attending a BiggerPockets webinar. Hosted by expert real estate investors, you&#8217;ll learn how to master the basics and get tips for finding your next deal. Check out what&#8217;s available and register for an upcoming session!<\/p>\n\n\n\n<div id=button-custom-event-block_6418deb7ecd3a class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/webinars\" x-on:click=\"window.analytics.track(&#039;Block Block | Subscriptions | Webinars&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/investing-prepare-inflation&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Register for an upcoming webinar<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Untitled-design-20.png\" alt=\"register for a free webinar\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Existing assets over new builds<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Investing now in existing assets will shield you against rising prices that will impact new builds. Already facing rising lumber and material costs, new construction will only get costlier with accelerating inflation. So why not lock prices in now with existing assets instead of rolling the dice on increasing prices with new builds?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key submarkets over top MSAs<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As the Great Recession and the COVID-19 pandemic demonstrated, not all markets are equally impacted by a downturn. Primary gateway markets typically bear the biggest brunt of economic downturns as residents flee expensive, high-tax urban metropolitan statistical areas (MSAs) for secondary and tertiary MSAs with lower taxes and costs of living.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just look at the exodus of workers from California and New York last year for proof. Follow the migration, and you can&#8217;t go wrong.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inflation is already here. While the rest of the investing public shrugs its shoulders, wise investors shouldn&#8217;t wait to assess and readjust their portfolios to plan for inflation in 2021 and beyond.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Typically, news of inflation spooks the market, triggering sell-offs as investors anticipate a slow down in business\u2014eventually denting their bottom lines. However, that hasn&#8217;t happened yet in 2021. Why?<\/p>\n","protected":false},"author":408607,"featured_media":138581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7119,5528],"tags":[],"class_list":["post-138580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-daily","category-real-estate-news"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/138580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/408607"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=138580"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/138580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/138581"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=138580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=138580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=138580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}