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

You can’t make more land, so the land that the house sits on becomes worth more and more over time.

The house sitting on the land is less important, but it kinda comes with the land.

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