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Homeowners got $2T richer during the first three months of the year

2 points| lizdax | 4 years ago |cnbc.com | reply

2 comments

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[+] danboarder|4 years ago|reply
I read the article and was surprised to find no mention of inflation. If the house is the same, all things being equal, then the desirability of the school district and other community improvements may account for some rise in value, and after that, inflation, or relative devaluation of the dollar, accounts for the rest of the delta.
[+] timeinput|4 years ago|reply
I mean couldn't it simply be an increase in demand due to remote workers? Someone renting an apartment in SF may now be interested in buying a home in the suburbs of DFW? Feel free to pick any other HCOL large city and medium to low COL area.

Inflation shouldn't be ignored, but if inflation was on the order of home price increases we'd be seeing it in the cost of food (which has gone up, but not that much), and other every day goods.