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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Housing prices don’t always increase over time. It depends on many factors including population growth, the structure and health of the financial industry and the general economy, zoning and building restrictions, government policies regarding land use and sale, and cultural attitudes toward home ownership, home size, and acceptable debt levels
During my PhD research I found reference to a study that showed that, over long periods of time, housing prices are actually stable and match inflation.
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