In the very long term, housing should be a 0% return relative to inflation because incomes pay for houses. And if incomes aren't increasing above inflation, in the longer term houses won't continue appreciate above inflation.
Here in CA we're in a 50 year macro bubble since the 60s where housing has increased above inflation and even above salaries, but once your paying 60% of your salary to housing, it's harder and harder for it go any higher.
And if society is actually progressing, it would be a bit less than 0%. Anything greater than 0% return is a bubble/ not sustainable increase - though there's nothing that says the bubble has to ever pop, but there are limits to how much it can go up.
Here in CA we're in a 50 year macro bubble since the 60s where housing has increased above inflation and even above salaries, but once your paying 60% of your salary to housing, it's harder and harder for it go any higher.
And if society is actually progressing, it would be a bit less than 0%. Anything greater than 0% return is a bubble/ not sustainable increase - though there's nothing that says the bubble has to ever pop, but there are limits to how much it can go up.