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.
In: 1365
Land value, street/city value, and less available houses. If you want to be as over-simplistic as possible, from my understanding at-least.
It’s pretty arbitrary though, and you could definitely argue some houses are worth less or more than others. There’s like a trillion more factors as well, age of the house, size of the land it comes with, if it’s in a vacation city, etc…
But right now at-least, housing is **definitely not** tied to inflation. It’s tied to the huge group(s) of landlords and billionaires who own way too much of it. And they’ve been artificially driving the price up for years and years now. Not to mention the sheer magnitude of cities that only have single-family zoning laws all across the country, or just make it straight up illegal to build anything besides; ‘average american house’.
There’s tons of empty houses that no average person could hope to afford, and just sit empty. And they make up the money lost by just having a few desperate/foolish folks rent it out, or pay a big mortgage monthly for it. It’s becoming a huge problem, especially for the younger generation; though it’s effecting everyone really.
If you’re curious where/how I know this from, I’ll give a link to a video you can watch/listen to in the background that talks about why houses cost too much.
[https://www.youtube.com/watch?v=UDnFSlzMlGI&t=737s&ab_channel=SomeMoreNews](https://www.youtube.com/watch?v=UDnFSlzMlGI&t=737s&ab_channel=SomeMoreNews)
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