[ItsMonkk]

The Fed tracks inflation using the CPI, the price of things that are consumed. Food is an example of a consumed good. Housing is not, that is an investment. The portion of housing in the CPI is of the rent of the time that is now in the past you consumed on it.

Housing is increasing in value faster than food or cars. So yes, you are better off. Housing is increasing at equal rates with housing, but you can leverage, so you are better off.

You didn't pay $250k for that house, you paid $50k and another ~100k over that 10 years. When you sell, you realize that $750k profit, which yes you will be taxed on some of that, but you can now take that $500k and put it into a $2.5M home. That $2.5M home will be better than your $250k home.

Leverage is risk, yes. But in a QE environment, not leveraging is the ultimate risk.