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The price of a house goes up. It’s called appreciation, but it mimics inflation much more. Except in certain volatile areas, housing has not been an inordinate
by aj7 9y ago
The price of a house goes up.
It’s called appreciation, but it mimics inflation much more. Except in certain volatile areas, housing has not been an inordinately good investment, but it is an inflation hedge. Housing is illiquid, does indeed depreciate, and often must be relinquished to be “spent.” Lack of savings or income so low it precludes savings are more important than housing as a source of inequality.
- awat 9y agoThis! The inflation hedge also makes the wealth gap exponential for those without the capital to get in the real estate game for lack of a better term. The capital needed to get into a home with traditional financing seems to go up by the month and is essentially moving the finishing line for those millenials saving for homes.