My first home was purchased for $11,000. It was a brand new 3 bedroom, 1 bath, 2 car garage dwelling.  The year was 1957.  That same house was valued at $600,000 several years ago.  My parents talked about being able to purchase a home for $3,000 20 years before that which was about the same size and layout of my first home.

  

 Bearing periodic down turns, housing is still the best inflation guard  the average Americans have at this writing, besides tying the hands of the politicians that are the only entity I know of that can write

The only thing that has changed during the years is, what the dollar can buy.  There used to be a store that was called The 5 and Dime.  The 5 being 5 cents, has long since gone the way of the Dodo.   When we look at the profit at which we purchased a property and the price that it sells for, we rub our hands, but, how much will that profit buy?  The concerning facts are that the ugly, insidious head of inflation has been the robber of our dollar’s value.

 

Extending this trend forward for 20 years and using the last 80 years as a model, it follows that your $500,000 home today will reach $650,000 in 20 years or, if we use the last 20 years as a model, a $600,000 today will be valued at $1,032,000 in 20 years.  The problem is that our $2.00 loaf of bread will have risen to $7.00 or more in 20 years.

 

Bearing periodic down turns, housing is still the best inflation guard  the average Americans have at this writing, besides tying the hands of the politicians that are the only entity I know of that can write checks with no money in the bank.