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Real Estate Is Emerging as a Hedge Against Roaring Inflation

Those seeking alternative investments from stocks and bonds may turn to the housing market, but that strategy still presents risks. 

Homes in San Francisco, California.

Homes in San Francisco, California.

Photographer: David Paul Morris/Bloomberg

Surging markets spurred a buying frenzy for everything from stocks and cryptocurrencies to new homes over the last two years. Now, with inflation at a nearly 40-year high and at least three priced-in rate hikes, the hunt for investing safe havens is on. 

Real estate is considered one approach to hedge against inflation, given the asset class usually has little correlation with stocks and bonds. So naturally, investor interest is soaring — even against the backdrop of a super hot real estate market, a low supply of houses and mortgage rates threatening to creep up.