no, you are thinking about it wrong. housing as a whole rises at the rate of inflation. The particular house you purchase can easily rise not at the rate of i

no, you are thinking about it wrong. housing as a whole rises at the rate of inflation. The particular house you purchase can easily rise not at the rate of inflation but less, due to depreciation and idiosyncratic factors. If you want to invest in housing, then buy reits or invest in private real estate funds. That doesn't have to involve buying a house. As to the bust, it is only atypical if you think about housing in isolation. If you think about it as just one of many assets trading in the economy, then you will realize that busts in asset prices occur all the time, so it's not some sort of one off that can never happen.