No. of Recommendations: 1
Houses do increase in price during periods of inflation. On average, over long periods. Saying that they don't because of the recent plunge is like saying stacks don't tend to increase in price over time because of the recent plunge. But I think that excluding bubble periods, home prices in general do not increase as fast as the inflation rates, and they are money pits due to taxes and repairs.

So most of the time they are not good investments, but you have to live somewhere. The first house I ever bought many years ago cost just under $30,000 and is valued at over 10 times that much now. So that is certainly some inflation protection.

Also clever or lucky home buying can pay off big. If you have the luck or the skills.

I'm having my widows replaced in a 15 year old house because of wood rot. I suspect that ever since WW2 there has been a gradual decrease in quality of home construction. I see $ 700,000 new homes being built using the same cheapo windows as my far more modest home. Homes today won't last a hundred years, they will last a lot less, then be torn down and replaced with newer even more disposable homes.That's already happening in my home city.
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