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[edit: OP edited their comment to remove some things, so now this comment looks strange] 315k to 800k is 2.53x, not 3.5x. That would represent a 7.1% annual in

[edit: OP edited their comment to remove some things, so now this comment looks strange] 315k to 800k is 2.53x, not 3.5x. That would represent a 7.1% annual increase in 13 years. If housing is 33% of the average person's budget, and all other costs increased by 3% annually, that'd be 4.3% annual inflation. Nowhere near double digits. (That's of course assuming a very large home price increase like you see in a few Canadian metro areas, which is way out of line with the vast majority of the US)

dleslie 5y ago
4.3% is still a shocking number; it's roughly double the number the BoC declares.
- owenversteeg 5y ago
  4.3%, like I said is making two huge overestimates: one, that home prices increased nationwide by far more than what they actually did, and two, that all other things inflated by an average of 3%. Plenty of things even saw negative year over year changes. TVs have gotten incredibly cheap. Software is basically free (whether you pay for it with your privacy or go with FOSS.) Furniture, clothes, lights, toys have gotten far cheaper than they were even a few decades ago.
throw0101a 5y ago
Shelter is 27% of Statcan's CPI, with Owned accommodation being 17%: * https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc-eng.htm https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc... However what you're talking about is asset prices, which has nothing to do with inflation. There's a term for rising asset pricing: * https://en.wikipedia.org/wiki/Economic_bubble https://en.wikipedia.org/wiki/Economic_bubble Going to US numbers, inflation-adjusted monthly mortgage payments are the lowest they've been in quite a while: * https://awealthofcommonsense.com/2021/03/what-if-housing-prices-arent-as-high-as-they-appear/ https://awealthofcommonsense.com/2021/03/what-if-housing-pri... Purchase price would effect downtime amounts though.
- owenversteeg 5y ago
  Right, I agree with you entirely - higher home prices over a decade are not an indicator of "record inflation". I was just making that point in a somewhat different way to someone who does not understand the math behind inflation.
- bingbong70 5y ago
  >However what you're talking about is asset prices, which has nothing to do with inflation. There's a term for rising asset pricing: asset bubble. I would agree with your view if the bubble was isolated but when most/all scarce assets bubble simultaneously, it is the first sign that your explanation is inadequate..

dleslie 5y ago

4.3% is still a shocking number; it's roughly double the number the BoC declares.

owenversteeg 5y ago
4.3%, like I said is making two huge overestimates: one, that home prices increased nationwide by far more than what they actually did, and two, that all other things inflated by an average of 3%. Plenty of things even saw negative year over year changes. TVs have gotten incredibly cheap. Software is basically free (whether you pay for it with your privacy or go with FOSS.) Furniture, clothes, lights, toys have gotten far cheaper than they were even a few decades ago.

throw0101a 5y ago

Shelter is 27% of Statcan's CPI, with Owned accommodation being 17%: * https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc-eng.htm https://www150.statcan.gc.ca/n1/pub/71-607-x/2018016/cpi-ipc... However what you're talking about is asset prices, which has nothing to do with inflation. There's a term for rising asset pricing: * https://en.wikipedia.org/wiki/Economic_bubble https://en.wikipedia.org/wiki/Economic_bubble Going to US numbers, inflation-adjusted monthly mortgage payments are the lowest they've been in quite a while: * https://awealthofcommonsense.com/2021/03/what-if-housing-prices-arent-as-high-as-they-appear/ https://awealthofcommonsense.com/2021/03/what-if-housing-pri... Purchase price would effect downtime amounts though.

owenversteeg 5y ago
Right, I agree with you entirely - higher home prices over a decade are not an indicator of "record inflation". I was just making that point in a somewhat different way to someone who does not understand the math behind inflation.
bingbong70 5y ago
>However what you're talking about is asset prices, which has nothing to do with inflation. There's a term for rising asset pricing: asset bubble. I would agree with your view if the bubble was isolated but when most/all scarce assets bubble simultaneously, it is the first sign that your explanation is inadequate..