3 ms·

home prices have appreciated far faster than the cost of living during most of people's lives.

• pascalxus 8y ago
  don't expect this to continue. In the very very long term, price appreciation of housing will always match inflation.
  • mistermann 8y ago
    In the long run, and in the aggregate (planet earth), but in a globalized world with capital from external economies (China) flowing into specific, highly desirable local economies, this old rule of thumb doesn't rule hold up anymore.
  • sgt101 8y ago
    In aggregate you might be right, but the issue is that people want to live in specific places and are willing to spend their disposable income to get what they want. As more and more people cross the threshold of absolute poverty more and more money is chasing the same physical assets. Housing is not a commodity asset.