Real Estate Broker · Oregon & California Coast · Member since 2022 · 834 posts · 696 votes
Fun Fact: The US National Debt totals more than the total value of ALL gold and silver on earth.
Another one? There is a proposal to raise the annual military budget by 50% to $1.5T - an inflationary policy.
Gold and Silver are monetary metals and canaries in the proverbial financial markets mine...I think we first posted here about AG at $1200 and AU the $20's..anyhow..clearly elements do not change but the denomination does and if priced in money (not currency) prime real estate in many markets could be undervalued - particularly when investors consider the exceedingly exotic methods of leverage and abundant tax incentives available.
If, as we anticipate, mortgage rates continue to fall, inflation increases or at a minimum USD purchasing power continues its downward trajectory, expect luxury markets to strengthen as wealthy investors diversify from equities -with an emphasis on luxury STR rentals that can off set costs and/or contribute to debt satisfaction.
For 'value' reference there are nearly zero new US cars that cost below $20K and the AVERAGE new vehicle is nearly $50,000 (or ten ounces of gold) with an average payment north of $700.
The point is: prime real estate of qualityconstruction, with updates, utility, development potential, strong income or optimal location are likely undervalued assets in 2026 and beyond.
*Inflationary outlooks could be offset by a revaluation of US gold holdings to current price levels. As an example the US Mint increased the premium on Silver Dollars by nearly 100% as of yesterday, to a cost of $169/oz.
Realtor · Las Vegas, NV · Member since 2014 · 996 posts · 1k+ votes
8mo
Real estate is an excellent hedge against inflation—but only if you invest in the right city. Real estate is also not subject to the fluctuations of the stock market.
So we are on the same page, inflation means your money loses buying power over time. If inflation is 3%, $100 next year will only buy what $97 does today.
Why Real Estate Can Be a Hedge Against Inflation
When you own rental property, your income comes from rent. If rents rise faster than inflation, your purchasing power increases. If rents rise more slowly than inflation, your purchasing power falls—even though rents are going up.
Why Location Matters
If inflation averages 4% and rents grow only 2%, your real buying power declines over time.
If inflation averages 4% and rents grow 7%, your real buying power increases.
The city where you invest determines how fast your rent can grow (and the appreciation rate): population growth, job growth, and personal income growth, etc.
Real estate is a hedge against inflation only if you buy in a city where rents increase faster than inflation (the historic trend is a good indicator).
Rental Income Can Be More Stable Than Stocks
Stock prices (and your wealth) can swing wildly. Markets can drop 30% in weeks [Source] , even when companies are healthy. Precious metals behave the same way—prices rise and fall based on sentiment, not reality.
Rental income is different. If your properties attract tenants with stable, essential jobs—such as healthcare, government, or mission-critical industries—rent checks tend to keep coming even during downturns.
Income stability depends on who your tenants are, not what the market is doing. With the right tenants, market volatility has little impact on your rental income.
FERNWOOD Team, KW VIP Realty520 Reviews