The pandemic has caused major economic change in the country, and it’s looking like there will be lasting consequences. With supply chain issues, a supply and demand crisis emerged leading to car automobile and housing inventory to significantly decrease. This triggered the inflation we experienced and why the price for cars and houses skyrocketed in 2021. With the pandemic continuing, experts are predicting that the factors pushing inflation will continue to linger in 2022.
One of the biggest problems in the housing market right now is the high cost of building materials. This is due in part to a lack of skilled workers producing the materials as well as slow production rates because of the supply chain problems. If the pandemic slows down in the next year, demand for goods will balance which will ease the pressure on supply chains. This means that the high costs for building materials could even out and production can start to recover. These factors are highly dependent on COVID-19 and there is always the possibility that the supply chain issues will continue.
Investing in real estate could be a way to protect yourself from this lingering inflation and supply chain issues we are experiencing. Experts predict that in 2022 there will be a 6.6% increase in home sales as well as a nearly 3% increase in appreciation. Real estate investments have even entered the metaverse with the revenue expected to increase over 40% through 2027. While metaverse real estate is still a new and speculative venture, investing in real world real estate could prove to be beneficial during these economically uncertain times.
