Here's the problem - we use the Consumer Price Index to measure inflation, of which "housing" is only 33% - much of which is actually rent, which is quite a bit more inelastic than home prices. If someone buys an 8 unit condo building in 1980 and rents out each unit for a 20% profit, 20 years later they're still making a 20% annualized profit and maybe rent hasn't increased.
Asset inflation is inflation. That "real" inflation, also known as the consumer price index, hasn't been going up is a factor of both automation/economies of scale and an extremely bifurcated economy in which low end workers are making pennies, toilet paper is cheap, but a house in an area with a working economy costs triple what it did 10 years ago.
Here's the case shiller national home pricing index:
https://fred.stlouisfed.org/series/CSUSHPINSA
Compare that to any inflation chart. Its not supposed to be the same, but I posit the "housing" part of the CSI is almost completely inelastic and only reflects what people pay in rent/mortgage, not the cost of entry. Housing prices can go up by 20% a year for 5 years and there's still no "inflation".
Asset inflation is inflation. That "real" inflation, also known as the consumer price index, hasn't been going up is a factor of both automation/economies of scale and an extremely bifurcated economy in which low end workers are making pennies, toilet paper is cheap, but a house in an area with a working economy costs triple what it did 10 years ago.
Here's the case shiller national home pricing index:
https://fred.stlouisfed.org/series/CSUSHPINSA
Compare that to any inflation chart. Its not supposed to be the same, but I posit the "housing" part of the CSI is almost completely inelastic and only reflects what people pay in rent/mortgage, not the cost of entry. Housing prices can go up by 20% a year for 5 years and there's still no "inflation".