Hedge against rising inflation protects the value of your investment from inflation and its effects. But what is inflation? Inflation is the rise in prices over the years. Real estate has been correlated with hedge against inflation, and I find it to be pretty accurate. Over time, property values always seem to be at a steady curve, going upwards, which ultimately respects the dynamics of inflation. Property values will rise as inflation does, which can change the amount of rent that a landlord may charge. "Intuitively, one would expect real estate to be an inflation hedge because rentals can be adjusted over time in response to movements in inflation." (Taderera & Akinsomi, 2020, para 1) We have seen the sudden increase in prices on homes happening in today's time, not only are the value of houses going up to buy but also to rent.

In our textbook, inflation is explained as an influence in the topic of the increases of costs, such as, labor, insurance, supplies, and taxes. Hedge against inflation is most commonly used with gold and common stock, due to the nature of ownership. "Stocks should serve well as inflation hedges, as they represent claims against real assets, whose values should keep pace with changes in purchasing power." Gulseven & Ekici, 2020, para 13) But unlike stocks, gold, and bonds, real estate increases in value over a long period and generates recurring income streams. "Do not have two differing weights in your bag - one heavy, one light. Do not have two differing measures in your house - one large, one small. You must have accurate and honest weights and measures, so that you may live long in the land the Lord your God is giving you." (NIV, 1973/2011, Deuteronomy 25:13-15)