On The Market What Happens to Real Estate When the Dollar Declines?
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Jul 21, 2025 Explore the impact of the declining US dollar on real estate investments! The discussion unfolds with the connection between currency fluctuations, interest rates, and inflation. Discover how these shifts could influence housing prices and investment strategies. Learn about the potential benefits for property owners, such as rising home values and rents, while navigating the complexities of market affordability. Tune in for insights on adjusting your investment approach in a changing economic landscape!
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What Drives Dollar Value
- The US dollar's value fluctuates due to supply and demand in an open market with other currencies.
- Interest rates, inflation, and economic growth are the main drivers affecting the dollar's strength.
Why Dollar Declined in 2024
- The recent dollar decline is due to shifting interest rate expectations, economic policy uncertainty, debt concerns, trade tensions, and global economic performance.
- These factors together have decreased demand for the US dollar from large international investors.
Weak Dollar Fuels Inflation and Prices
- A weaker dollar can raise inflation by making imported goods and construction materials more expensive in dollar terms.
- Inflation can increase property values and rents, benefiting homeowners and landlords if fixed debt rates are locked in.