[dragonwriter]

> If the value of a house appreciates in terms of purchasing power for some other good at a constant rate,

Houses don't appreciate, they just (often) depreciate less in absolute terms than the land they sit on appreciates.

[majormajor]

Yeah, and that's also the reason that far more people are complaining about housing prices specifically in high-demand cities vs ghost towns in the rust belt...

Talking about housing prices without talking about demand being a non-static thing is only talking about half the story. And development, by its very nature, is intended to increase demand and make land even more valuable, so it can easily have unanticipated results.

We moved demand around in the past, such as with the federal government and defense contractors spreading out a bunch of work in the Cold War to smaller developing cities. It could happen again.