How to Invest in Real Estate During a Mega Inflation Period
As a general rule, real estate investments -- such as rental properties or stock-based investments like real estate investment trusts (REITs) -- tend to hold up well in inflationary environments. Property values and rental income both tend to keep up with inflation over time, and the investment vehicles that invest in real estate tend to outperform the market during inflationary periods.
In 2021, inflation reached its highest level in 40 years, and REITs as a group outperformed the S&P 500 by nearly 13 percentage points. And in the modern era, REITs tend to underperform the market when inflation is 2.5% or lower, but handily outperform when inflation is 7% or higher, as it is now.
Image source: Getty Images.
Source Fool.com
