[Robert A Cook PE]

Well, true.

But "gold" and "oil" have the same "value" (as commodities) that they did in the 60's, 70's, 80's, and 90's. So changes in oil and gold and steel prices do reflect inflation.

Houses, now, are (usually) much larger, much fancier and so can't be directly compared when looking at prices. House location, too, changes in value as traffic and neighborhood desirably changes. House prices, as speculation forces prices up, are not a good indication of inflation in the long run. You can't compare a 1920's downtown/midtown (now slum) 3000 foot house with a suburban 3000 foot in a classy neighborhood.

[arthurus]

You cannot separate out one price from prices in general kust because it looks like a solid asset. Housing prices reflect a flight into solid assets which, just like a flight into gold, is a result of actual inflation. People put their money in an asset that they think will preserve value. The only economic difference between housing and oil is oil is more volatile.