Episode 157: Inflation and Deflation — How They Affect Real Estate Investments

Building Passive Income

Episode 157: Inflation and Deflation — How They Affect Real Estate Investments

Play Episode Pause Episode

1x

00:00 / 00:14:38

RSS Feed

Share

Link

Embed

<blockquote class="wp-embedded-content" data-secret="QYZcDpeJ0r"><a href="https://www.creipartners.com/podcasts/inflation-real-estate/">Episode 157: Inflation and Deflation — How They Affect Real Estate Investments</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.creipartners.com/podcasts/inflation-real-estate/embed/#?secret=QYZcDpeJ0r" width="500" height="350" title="&#8220;Episode 157: Inflation and Deflation — How They Affect Real Estate Investments&#8221; &#8212; CREI Partners" data-secret="QYZcDpeJ0r" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script> /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); //# sourceURL=https://www.creipartners.com/wp-includes/js/wp-embed.min.js </script>

Inflation and Real Estate Investing

The inflation real estate relationship can affect rents, operating expenses, financing, debt, and property values. However, real estate does not respond to every inflationary environment the same way.

In this episode of Building Passive Income, CREI Collin explains inflation, deflation, and disinflation. You’ll learn how these economic conditions can affect real estate and how investors can build portfolios designed to handle different scenarios.

What You’ll Learn

• The difference between inflation, deflation, and disinflation
• Why real estate is considered a real asset
• How inflation can affect rents, expenses, debt, and property values
• Why deflation can create challenges for leveraged real estate
• How financing and lease structures affect inflation risk
• Why cash flow, leverage, and reserves matter
• How to prepare for multiple economic environments

Key Takeaways

The inflation real estate relationship depends on property type, lease structure, financing, leverage, expenses, supply, and local demand.

Inflation can benefit some properties when income grows faster than expenses. However, higher inflation can also contribute to higher financing costs and operating expenses.

Deflation presents different risks. Falling prices and weaker economic activity can put pressure on rents, property income, and the real burden of debt.

Rather than betting on inflation or deflation, focus on strong property fundamentals, sustainable cash flow, appropriate leverage, adequate liquidity, and financing that fits the investment strategy.

Resources Mentioned

• Federal Reserve — PCE Inflation Data
• Bureau of Labor Statistics — Consumer Price Index (CPI)
• Federal Reserve Economic Data (FRED)

Connect with CREI Partners

Want to learn more about how CREI Partners evaluates economic conditions and real estate fundamentals when underwriting investments?

Schedule a call with the CREI Partners team.

Disclaimer

This podcast is for educational purposes only and should not be considered financial, legal, tax, or investment advice. Inflation, deflation, financing conditions, and real estate performance vary by market, property type, and individual investment.