Why Did Americans Buy Real Estate in the 1970’s to Protect Against Inflation?

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In this tutorial video, we'll explain what Americans did in the 1970's when the country was faced with persistent, high inflation that reached double-digits. We'll explain why they chose to buy "things they don't make anymore of," such as waterfront real estate.

We'll touch on economics and monetary theory, and why it makes sense to buy finite assets such as real estate, especially real estate with defensible moats against overbuilding, during an inflationary environment.

For example, we'll explain how a large expansion of the money supply (i.e. money printing, debt monetization) leads to a larger amount of money chasing the same amount of goods, services and assets. This ultimately leads to higher prices across the board. This can be worsened when there are supply side shocks in the equation, such as the supply chain problems the economy is facing today. This leads to a reduced supply of goods and some assets (i.e. delays for new construction projects), which only makes inflation worse given the larger monetary base.

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Hauseit Group LLC, Licensed Real Estate Broker
Tel: (888) 494-8258 | https://www.hauseit.com
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