How housing became the world’s biggest asset class

Re:How housing became the world’s biggest asset class by javagram on Wednesday January 22, 2020 @03:41PM (#22121773)

Savings accounts aren’t inflation protected. You can buy inflation protected assets - US series I savings bonds, and they offer between 0 and 0.5% fixed rate historically on top of inflation and are limited to $10,000 per person per year.

An actual high yield savings account right now gives around 2% nominal interest which is less than inflation.

The economist chart of house prices from the article certainly seems to show them outpacing inflation recently. Looking at an index since 1900 is a bit misleading since public policy changed dramatically in the 1950s-70s to constrict supply and juice demand.

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Re:How housing became the world’s biggest asset class by the_gastropod on Wednesday January 22, 2020 @04:22PM (#22122193)

> An actual high yield savings account right now gives around 2% nominal interest which is less than inflation.

The inflation rate in 2019 was 1.76% [1]

> The economist chart of house prices from the article certainly seems to show them outpacing inflation recently. Looking at an index since 1900 is a bit misleading since public policy changed dramatically in the 1950s-70s to constrict supply and juice demand.

Ok, then look at it from 1970... The results are even worse

[1] https://www.in2013dollars.com/inflation-rate-in-2019

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