Real state can provide a way of avoiding real loses of value in asset portfolios. In a recent paper, Stevenson (2000), examines the long-term relationships between inflation and housing market in Great Britain. We apply Stevensonís methodology to the Spanish case, analyzing whether regional housing investment acts as an effective hedge against inflation. To that end, following Stevenson, we use the cointegration framework to assess the long-run linkage between inflation and housing returns.