Real Estate – The Ultimate Hedge Against Inflation As you know, we currently live in highly inflationary times. What you may not know is that over the past 40 years, real estate has proven to be the number one asset class as a protection against inflation. Here is a recap of the San Francisco Bay Area home price appreciation and market cycles since 1990. Over the past 30 years, we have experienced the following: a 1990 recession, dotcom boom, subprime bubble and crash, market recovery, high tech and pandemic boom, and mid-late 2022 market correction
Here are two graphs showing the appreciation in home prices. The first shows the six most expensive counties in the Bay Area: San Mateo, San Francisco, Santa Clara, Alameda, and Santa Cruz. Te median home price January 1990 was $250,000. Last July 2022, the median home price was $2,250,000.
The second graph shows the most affordable counties in the Bay Area: Napa, Sonoma, Contra Costa, Monterey and Solano. In January 1990, the median home price point was $200K. July, 2022 the median home price was $1 Million.
This demonstrates that if people can weather the storm through the cycles of the real estate, they will be rewarded for their patience. The perfect way to grow your assets during these inflationary times, is to invest in real estate: residential or commercial. If you need an advisor, I invite you to reach out to me so we can put a plan in place. Owning real estate gives you the power to have financial freedom and not be at the whim of a cyclical the market.