Inflation erodes the purchasing power of cash. However, tangible assets like real estate have historically adjusted alongside inflationary pressures.
As inflation increases the cost of living, rents typically rise in response to market demand. This can increase cash flow for property owners.
Property values often trend upward over long periods, partly due to replacement costs increasing during inflation.
Fixed-rate mortgage debt becomes cheaper in real terms during inflation. You repay loans with dollars that are worth less over time.
Population growth and limited land supply reinforce long-term property demand. Inflation does not remove the need for housing.
Strategic investors view inflation not as a threat, but as a reason to own strong assets.