Your personal rent example: 650 -> 925 in 20 years is very meager growth, well below inflation: 1.78% per year. So yes, less than 4%. A lot less. >>> (925/650

Your personal rent example: 650 -> 925 in 20 years is very meager growth, well below inflation: 1.78% per year. So yes, less than 4%. A lot less. >>> (925/650.0) (1.0/20) 1.0177975914387338 Note that 20 years of +1.78% per year does +42% compounded. >>> 1.0178 20 1.4231442772353857 In real money, the rent for your place has gone down, not up, ignoring the furnishing.