Working Paper #716
Inflation and Real Estate Investments
Brad Case · Susan M. Wachter
Commercial Brokerage Real Estate Investment Trusts United States
This paper analyzes the inflation sensitivity of real estate investments, comparing them to other inflation-sensitive assets. The most transparent source of real estate investment returns comes from publicly traded stocks of real estate investment trusts (REITs). The authors examine the available return data, with an emphasis on their relationship to U.S. inflation, although conclusions may apply elsewhere as well.