Very curious if real estate can hold value in the hottest markets in the US, though. I recently moved from Denver, where housing prices doubled or even tripled in the last couple of years. In the mountains of CO, there's places where prices quintupled.

I suspect that those price trends aren't sustainable, and have to deflate or stagnate at some point. In the LONG term, decreased immigration and birth rates in the US eventually have to result in lessened real estate demand. But that's probably going to happen on the order of decades, not months or years. Real estate in a lot of the US is at least a fairly stable investment (especially for wherever you want to live anyway!).

I don't think that's a common assumption, inflation means stricter monetary policy which slows growth for companies so stocks go down.

Real estate is not a good hedge against inflation, check out this video to see how there is no real proven hedge against inflation[1] (supporting papers in the videos description)

1. https://www.youtube.com/watch?v=1a3XnvRCcVo

> nothing is a good hedge except real estate it would seem.

This is similar to the best arguments I've seen for gold as well. It isn't a fortress against inflation and should only be part of a portfolio, but at the end of the day owning a physical object is better than a paper IOU

It's amazing how much all of the responses so far seem to be missing why this is the case. Assuming you have no choice but to live somewhere and pay for it, already owning at a 30-year locked in monthly payment benefits you as long as average monthly payments for comparable housing for new home buyers and renters keeps going up. Whether that is because of price increases or interest rates going up doesn't matter. If interest rates rise and home prices fall, but your monthly payment stays lower than what new buyers and renters are paying, you still benefit.

Someone said above that the only real hedge was to short the entire market. I think within a year, if interest rates rise, house prices will drop inversely.

I never understood that logic. Like, why would risky assets rise their prices when central banks are paying more interest?

real estate is not that good of a hedge, as it will tank after rates raises.