[hedora]

Inflation is about 2-3% per year, so that brings the real appreciation down to 2-6%.

That doesn’t tell the whole story, however. The 2008 stimulus plan basically printed money in the form of increased stock valuations and cheap mortgages. Stocks and housing have inflated well over 3% per year since then, while consumer prices have not.

Eventually that has to unwind. One option is for the federal government to claw the money back. That will lead to deflation and immediate economic ruin, so they can’t do it.

The more likely option is that we eventually hit a patch of high consumer price index inflation as workers start charging a living (housed) wage for their time.

[mrep]

> Stocks and housing have inflated well over 3% per year since then, while consumer prices have not.

Pretty much only the west coast has seen inflating home prices. For the rest of the country, inflation adjusted price per square foot hasn't really changed [0]. And Inflation adjusted Annualized S&P 500 Returns with Dividends Reinvested for the past 15 years are 6.738% versus 7.690% for the 15 years before that [1].

0]: https://www.supermoney.com/inflation-adjusted-home-prices/

[1]: https://dqydj.com/sp-500-return-calculator/