L
ast week it was reported that the annual inflation rate
in the US accelerated to 7.5% in January of 2022, the
highest since February of 1982 and well above mar-
ket forecasts of 7.3%, as soaring energy costs, labor short-
ages, and supply disruptions coupled with strong demand
weigh. Inflation Rate in the United States is expected to be
7.20 percent by the end of this quarter, according to Trading
Economics global macro models and analysts expectations.
In the long-term, the United States Inflation Rate is pro-
jected to trend around 1.90 percent in 2023, according to our
econometric models.
Housing prices tend to rise with inflation. Absent economic
and supply-and-demand pressures, the price of goods re-
mains the same. If the only change introduced to the econ-
omy is the addition of money, the price of goods will rise.
Of course, the economy is dynamic —nothing ever stays the
same. And there are a host of pressures starting and chang-
ing every day. But when the influence of other factors is
small, more money moving around more quickly will increase
the price of nearly everything, including housing prices.
Inflation Nation
THE AFFECT OF INFLATION
ON HOUSING PRICES
