Real estate generally holds steady against inflation and any lows the stock market might suffer, but it can lose value during deflationary periods or in areas that are affected by housing slumps. Because the market has such a particular focus, the average investor faces some hurdles. Not everyone will want to deal with all the rates real estate brings with it — interest rates, occupancy rates, vacancy rates, construction rates — but those who have a mind for it can find real estate investment a profitable experience.