Originally Posted by
FangsF15
I absoulutey agree with your overall point, but I would also point out it's not so much that your house is worth more, it's that the dollar is worth less.
Another component of the equation is that the debt is worth less thanks to inflation. This is one of the reasons leveraged real estate investments have such a big impact on wealth. Unleveraged real estate is a great hedge against inflation. Smartly leveraged real estate has a multiplier effect equivalent to the leverage ratio.
100% equity = inflation hedge
50% equity = hedge + gains equal to inflation
25% equity = hedge + gains equal to 3x inflation