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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Supply and demand.
The amount of land in any given area is fixed. As populations grow, so does the number of people who want to live in a given neighborhood or in a given area. Economics 101 – when supply is static and demand is increasing, prices will go up.
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