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Are Apartments Still an Inflation Hedge?

With sophisticated daily pricing tools, apartments today are better positioned to respond to inflationary pressures than they were forty to fifty years ago.

By Les Shaver | October 23, 2020 at 07:29 AM

During the last six months, The Federal Reserve has acted aggressively to thwart the COVID economic crisis. It pushed interest rates to near zero and purchased massive amounts of securities. Add these moves to the $2.2 trillion CARES Act, and you have an enormous increase in money supply and the federal budget deficit.

In a new report, Patrick Lynch, vice president of Research and Analytics Middleburg Communities, wonders, like many observers, if these moves will create inflation in the future. And if so, will the multifamily asset class continue its traditional role of providing a hedge. 

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