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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Everyone’s commenting on land being limited in areas that have seen large population growth, with little supply growth to match. That’s true, but people are missing the other aspect – building densely is prohibited in many of these areas so the supply can’t meet the demand.
See denver and San Francisco for great examples – both have seen large population increases over the past few decades, largely from high income earners who can afford to pay a premium for less housing. Both have zoning codes that guarantee that medium and high density housing is practically illegal to build.
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