Currently Reading

Inflation is Good for Homeowners and Landlords

Advertisement
Economics

Inflation is Good for Homeowners and Landlords

Inflation can present challenges, but it also presents opportunities, especially for homeowners and landlords. 


October 4, 2021
Rising inflation arrow and $100 bill
Image: stock.Adobe.com

Inflation has been around here and there, but widespread inflation hasn’t made an appearance for more than 40 years. So for a reminder of what that scenario could look like, John Burns of John Burns Real Estate Consulting shares a blog about the opportunities that rising prices can present for two unique situations. 

Inflation can be great for homeowners with a 30-year fixed mortgage because your monthly mortgage cost will be constant while the cost of building a house like the one you own will rise, which can raise the value of your property. And, presuming you have an employer who raises salaries and wages, your income goes up more than usual as your employer passes on cost increases to customers.

In an inflationary environment, you want to be the landlord and not the tenant. That is one major reason that so much money is pouring into rental housing right now. In an inflationary environment where expenses are rising, landlords should have the ability to raise rents on tenants whose incomes are rising as well. In a market with strong demand like today, those rent increases should exceed expense increases.

Read More

Tags

Related Stories

Labor + Trade Relations

November Sees Weak Hiring But More Labor Recruits

What a contradictory November report means for an industry combating a massive labor shortage

Economics

Declining Unemployment Rates Suggest Economic Recovery Despite Lingering Labor Shortage

The construction industry is actively hiring and recruiting, but many more new workers are needed to increase housing supply

Economics

Inflation Concerns Elevated by Labor Shortage and Lumber Tariffs

How the long-term effects of high inflation could carry over into 2022 

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.