[capableweb]

> I've never understood how real returns on house prices could be believed to be sustainable. If the value of a house appreciates in terms of purchasing power for some other good at a constant rate, at some point in the far future just a single house would become valuable enough to purchase the entire global supply of the other good.

Isn't this the illusion our economic system gives us though, for everything from goods to companies in general? There is no "top" of the value of a company, so seemingly everyone is OK believing companies can grow forever and always get bigger/more profitable, so shareholders gets more profit.

If this is to believed, why cannot you believe the same for the housing market? Seems to fit with how most people understand the underlying economic model anyways.