> if they ever decide to sell the house and claim the 10% increase as profit, where are they going to live next? They will just have to buy/rent another house,

> if they ever decide to sell the house and claim the 10% increase as profit, where are they going to live next? They will just have to buy/rent another house, where their earlier profit will be going entirely towards paying the higher housing prices There is a small argument that this is why we use leverage when buying house. There's also the idea that 10% growth is hit with a 6%+ transaction fee because of real estate agents, brokers, and lenders.