It isn't the things that you buy that linearly increase (as you correctly pointed out) as much as labor, and any thing/service that has a large labor component.

It isn't the things that you buy that linearly increase (as you correctly pointed out) as much as labor, and any thing/service that has a large labor component. Because the staff delivering that labor also experiences an X multiplier in shelter costs (and for lower-wage workers, the multiplier is highly regressive and frequently much higher for them to obtain an equivalent quality of life), the labor input cost is increased. Unless you DIY everything, including not eating out (restaurants have very high labor input costs), fixing your own vehicles, do your own plumbing/electrical/HVAC, do your own dry cleaning/dentistry/vision care, etc., you'll see commensurately higher costs for any material goods and services with high proportion labor input costs. For busy single professionals, two-income couples, or families, it is not realistic to even mitigate these costs. A big chunk will unavoidably come out in property taxes for everyone, paying for public schooling: all those administrative staff, operations staff and teachers, wanting to live as close-in as they can afford, paying those linearly-increased dirt costs, will be expressed in your property tax bill. For the vast majority of people not connected with the real estate industry, they are far better off commoditizing their shelter cost complement, see [1] for this complements concept. This means vigorously opposing any increase of the "value" of their homes, even when selling. In the US, you will never, ever make back that "increased value" in the average time most US homeowners hold a mortgage (7 years), if you honestly accounted for all the actual costs you bear in all consumed goods and services for increased real estate prices. That increased value only benefits those who have a high churn rate on their properties. [1] http://www.joelonsoftware.com/articles/StrategyLetterV.html http://www.joelonsoftware.com/articles/StrategyLetterV.html