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This article comes from https://insight.kellogg.northwestern.ed that talks about the opportunity in real estate during these higher inflation times.
"ADAMS: Real estate is extremely attractive today
relative to other asset classes. It is a natural inflation hedge because
you’re consistently capturing the rise in cost by increasing rents—as
long as the economy continues to move along. I think that’s what is most
attractive right now, particularly for shorter-term-lease-type
products. The tipping point is when rents don’t grow as fast as the cost
to build. If rents slow a little bit and costs rise marginally up,
there’s still a reasonable cushion in the profit margin. When rent
growth starts to slow, building may not make as much sense anymore."
Two things I see in that statement are increasing rents and that is a good thing for investors. With inflation getting to a point that building will at least slow down a bit. Inventory will continue to be an issue as inflation will increase building cost and shrink profits for builders.
I have 15-20 calls a day on people in desperate need of housing. Just leased a $1700 a month property from an out of state tenant. They could not find anywhere to live and made 6 times the rent.
The other issue that will not be fixed in the near future is inventory. Housing stock is very low in most places and in the Cleveland Metro area also.
With little to no new median priced homes built between 2006-2016 it will be a long road to get back to normal amount of median priced homes on the market.
The future for investors in real estate is very good and there will be more income in today's real estate and slower growing equity. All good for real estate investors.
Real Estate is also a great hedge to park money during inflationary periods.
Need to generate more income with real estate?
Call me (Brett) 216-703-5740 Fathom Realty or Whatsapp me
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Thank you