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I found on investopedia how inflation will affect companies profits and standard of living:

high inflation can also impact corporate profits [...] reducing the standard of living of individuals, especially those on fixed incomes`

They also explained how it will impact stock prices.

But how will hyperinflation impact home prices?

As far as I understood, prices will rise, so people on fixed income probably will have no money to pay for rent (or bills) and they may loose their jobs and they will have to move to cheaper places to live, is there any study or theory?

What about home loan? - many homes purchased from loans

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    "hyperinflation" (pls note the "y") is a disaster which occurs once every hundred years or so. the most famous recent one was in Germany around 1920. that is quite different from "inflation" which is a normal thing around us all the time. the two things are totally different. You use both words and it is a bit confusing.
    – Fattie
    Mar 30 at 13:33
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    Dont forget Zimbabwe, much more recently. Ex-colleague who came from there told us how lucky he was to get one contract that paid in petrol.
    – gnasher729
    Mar 30 at 14:00
  • Hungary in 1946 was "impressive" as well: en.wikipedia.org/wiki/Hungarian_peng%C5%91#Hyperinflation
    – glglgl
    Mar 30 at 14:52
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    @Fattie Hyperinflation occurs far more often than once a century. The Wikipedia article lists at least fifteen episodes during the past hundred years, most recently in Venezuela from 2016 to date. A few of them are occupation scrip in wartime, which is naturally more prone to hyperinflation, but most of them aren’t.
    – Mike Scott
    Mar 30 at 14:53
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    @MikeScott - you're damned right, I was being Western-centric. Or Euro-centric or such. I think the key point is the OP's question muddles two utterly different issues.
    – Fattie
    Mar 30 at 15:06
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Hyperinflation, unlike 'regular' inflation, is inflation that is so severe that currency, and prices denominated in that currency, are pretty much irrelevant.

Basically the 'price' of your house will go away - your house will be priceless - because you will not want any amount of the hyper-inflated currency.

In this scenario, your house will still have the same value - a place for you to live - as long as you can physically defend it.

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Inflation is good if you have debt. The amount of debt stays the same, but the money you owe is worth a lot less. Additionally, the value of material assets tends to increase with inflation, may it be expensive art or homes.

However, there are some caveats to this. First is interest rate. High inflation typically comes with high interest rates. If your have a fixed interest rate loan that is great but if you have variable rate loans these will become more expensive. Also any potential buyer will face the high interest issue when they need to finance themselves.
The other caveat is how bad the inflation is compared to wages. Working people do not have a fixed income, they can always renegogiate and they will do so when they expect prices to rise. This is easier when inflation is already high and more difficult when inflation is still low but increasing. As long as incomes can keep up with inflation, prices will increase.
Lastly, it is also important about which type of inflation we are talking. Are we talking about "just high" inflation of 10% like the US in the late 70s? Or are we talking about devastating hyperinflation like Germany after WW1 or in recent times Venezuela? From todays perspective both look terrible high but in the first case incomes have roughly kept up with inflation.

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  • Also, the US inflation of the '70s was more or less constant over a decade, so it became factored in to most things. True hyperinflation tends to accelerate, which means a constant race to keep up.
    – jamesqf
    Mar 30 at 16:18
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Hyperinflation means: Inflation to such a degree that you need to get rid of any money as soon as possible. You get your wages, you run to the shop to turn cash into food, because tomorrow you’ll get less food for your money. There was a story from Germany around 1920, where thieves found a wheelbarrow full with bank notes - they emptied the wheelbarrow and stole it, the cash wasn’t worth stealing.

Your wages are not fixed. You wouldn’t work for fixed wages. You can’t buy a house because nobody will sell a good house for bad money. Your landlord won’t throw you out because he won’t find anyone else capable of paying.

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