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There's a separate parameter to control the increase in house prices. My assumption is that houses have tended to increase faster than inflation in most markets
by alach11 5y ago
There's a separate parameter to control the increase in house prices. My assumption is that houses have tended to increase faster than inflation in most markets.
- pestatije 5y agoYes, and here is the great fallacy of current times economics. Whilst house price increases leave younger people unable to afford one, inflation (official numbers) keeps at its lowest levels ever.
- gruez 5y ago>My assumption is that houses have tended to increase faster than inflation in most markets. It does? Random chart I found: https://www.aei.org/wp-content/uploads/2020/01/cpi2020-875x1024.png https://www.aei.org/wp-content/uploads/2020/01/cpi2020-875x1.... It seems to be higher, but only slightly.
- pestatije 5y agoThat "Housing" in the chart is the housing component of inflation (rental, household furnishings, etc.)
- gruez 5y agoGood point. The CPI increased 20.4% from june 2012[1] to june 2021 was 20.4%, but the "Rent of shelter" component increased 29.7% in the same time period. [1] that was the earliest year that was available at https://www.bls.gov/cpi/tables/supplemental-files/home.htm https://www.bls.gov/cpi/tables/supplemental-files/home.htm
- ska 5y ago> My assumption is that houses have tended to increase faster than inflation in most markets. Historically this is usually true, but also usually less than the equivalent amount in say (equivalent to) index funds. Not sure where/how this is factored in.
- BeetleB 5y ago> My assumption is that houses have tended to increase faster than inflation in most markets. In recent years. In the long run - not much. In the really long run, it's about 1-2% above inflation. Of course, it's hyper-dependent on the locale.