Why do home prices increase over time?

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To be clear, I understand what inflation is, but something that’s only keeping up with inflation doesn’t make sense to me as an *investment.* I can understand increasing value by actively doing something, like fixing the roof or adding an addition, but not by it just sitting there.

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Anonymous 0 Comments

Something I don’t think other people have mentioned:

Established house prices increase because it costs more and more each year to build new houses.

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