your absolutely right. In the long term house prices must be roughly pegged to inflation and if society is actually making progress on providing houses it woul

your absolutely right. In the long term house prices must be roughly pegged to inflation and if society is actually making progress on providing houses it would be even less than inflation. anything else simply isn't sustainable. that doesn't mean it can't be a safe place to put your money which is not a bad investment actually. For the last 10 years inflation has been beating what a bank can return. Of course, there's a huge difference between living in your house or renting it out. If you live in it, you're taking a pretty big liability. If you rent it out in a rent to own ratio optimized location, it can be a very good investment and return 6% after all expenses (roughly 4% after income taxes), plus the principle is inflation pegged in the very very long term.