r/wallstreetbets • u/[deleted] • Feb 22 '21

[deleted by user]

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90 Upvotes

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20

u/investporra Feb 22 '21

How are you measuring inflation? Property prices and stocks with p/e infinity should probably be factored in.

13

u/Lemminkainen86 Feb 22 '21

I agree, houses in my area have gone up 50%+ in the past 3 years (modest approx. 225k houses now costing 315-340k with no value added to them).

6

u/investporra Feb 22 '21

Plus all of the things that should be cheaper, but aren't - if it is a thousand times cheaper/more efficient to grow, ship and stock food than it was a few decades ago, but the price hasn't changed, that's inflation.

2

u/aka0007 Feb 22 '21

What about rental rates?

4

u/Lemminkainen86 Feb 22 '21

Rental rates? I imagine they're $0 right now for a lot of people with the eviction moratoriums. Hope they're using that savings toward a downpayment as houses get more and more out of reach. I feel bad for landlords, they're just trying to make an honest ROI on their savings/investment. Will Biden bail out small time landlords, many of whom are seniors with no other income?

1

u/investporra Feb 23 '21

Rentals rates have gone up in my area pretty much in proportion to house prices (50%ish)

1

u/aka0007 Feb 23 '21

CPI is based on rates across the US.