Housing Real Apprec...
 
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Housing Real Appreciation v Inflation

 

NC Cpl
(@nc-cpl)
Eminent Member Customer
Joined: 2 months ago
Posts: 26
Topic starter  

For property, PRC indicates that the real appreciation rate would be the same as the general inflation rate specified on the Home page. Robert Schiller data indicates that taking years 1890-2021 into account, the real appreciation rate for housing is 0.5%. So would you enter -2.5% in this cell if the general inflation rate is 3% on the home page?


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Stuart Matthews
(@smatthews51)
Member Admin
Joined: 12 months ago
Posts: 215
 

Yes


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Bill Hines, Retirement Planner
(@hines202)
Trusted Member Customer
Joined: 8 months ago
Posts: 60
 

Before incorporating that assumption, I'd look at a more realistic timeframe than one starting in 1890 🙂 Consider basing it on the modern era, perhaps starting in 1950 or so.

Bill Hines
Investment Advisor/Financial Counselor/Retirement Planner
Emancipare Investment Advisors LLC
https://emancipare.com
bill@emancipare.com


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NC Cpl
(@nc-cpl)
Eminent Member Customer
Joined: 2 months ago
Posts: 26
Topic starter  

@hines202 Bill - do you happen to have any preferred data source upon which you are basing your housing real appreciation on and what is that % once you factor in general inflation?


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NC Cpl
(@nc-cpl)
Eminent Member Customer
Joined: 2 months ago
Posts: 26
Topic starter  

According to Schiller: 1987-2021 was 1.4%. You can see his list in the section of the forum for sources.


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