> Housing prices falling while consumer prices hold steady isn’t deflation. We're both handwaving here, but Wikipedia says: "In economics, deflation is a decre

> Housing prices falling while consumer prices hold steady isn’t deflation. We're both handwaving here, but Wikipedia says: "In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate)." https://en.wikipedia.org/wiki/Deflation https://en.wikipedia.org/wiki/Deflation The inflation rate is given by a price index which typically includes housing. If housing prices fall while everything else holds steady, that index has nowhere to go but below 0%. I realize that this is distinct from a systematic deflationary spiral that affects the entire economy. The point was, some people might only look at the inflation rate, see it's below 0, and start panicking and doing stuff to "prop up" prices instead of letting people profit from affordable housing.