> This under estimates appreciation due to the housing stock itself becoming more luxurious. How so? Large, luxurious, houses get counted just the same way as

> This under estimates appreciation due to the housing stock itself becoming more luxurious. How so? Large, luxurious, houses get counted just the same way as small houses. If you mean that new houses that have not been resold aren't a factor in the index and that this biases it against the latest housing, OK. But even new houses tend to be priced in line with comparable sales, linking them to history in a way compatible with how the index is calculated.