The Long Game: How Real Estate Outpaces Inflation Over Tim

[Jay Hines]

Every investor’s nightmare? Watching inflation quietly erode the value of their hard-earned returns. The good news: long-term rental real estate is built to fight back.

🏘️ Real estate doesn’t just keep up with inflation it often beats it. Here’s how:

• Rents adjust: Over time, rental income tends to rise alongside (or above) inflation, offering natural protection.
• Fixed debt, rising value: While your mortgage payment stays the same, property values and rents climb—widening your margin.
• Tangible asset resilience: Unlike stocks or crypto, real estate is a physical good with intrinsic demand—people always need housing.

We’ve seen this firsthand across the Baltimore Metro area. Investors who held properties over the past decade have watched inflation rise… but their equity rose faster.

There’s nothing flashy about buy-and-hold real estate. But if you’re playing the long game, it quietly becomes one of the most powerful tools in your portfolio.

I’d love to hear what strategies you’re using to hedge against inflation—let’s connect.

Let me know if you want to attach a chart or data point for visual impact. I can help with Week 5 when you’re ready!

[Ned Carey]

@Jay Hines it depends on how long you hold. Over the long term real estate goes up with inflation. It simply can't go up more than inflation for the long run because it becomes unaffordable to the point people CAN'T pay more even if they want to.  That is about where we are now, Housing has become very unaffordable. 

You mentioned the last decade as an example. In other words you are going from the lowest part of a real estate cycle to perhaps the highest part of the cycle. "The last decade" ignores the down part of a cycle which simply hasn't happened yet.

Real estate doe not have to go up faster than inflation for your returns to go up faster than inflations due to leverage. Your rent and value go up while your mortgage payment stays the same.

Despite my nitpicking some of your points, I agree with you and your basic premise is valid. 

I wish more people understood the wealth created in real estate comes over time.