Generally, with high inflation, housing, and other real estate asset prices rises. However, the consequent rise in mortgage rates tends to put downward pressure on demand for real estate as debt becomes expensive.
Given the current macroeconomic backdrop of high inflation and interest rate hikes, we think Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI), Equity Commonwealth (EQC), and Farmland Partners Inc. (FPI) might be best avoided now, considering their bleak fundamentals.
