While consumer prices stay low this real estate price inflation will certainly feed the general price inflation! It will also eventually affect business property/apartment rents etc. This is fueled by several years of e.g. zero or even negative nominal interest rates driving down yields on long financial assets as well! What do you invest in when nominal interest rates and yields are low?
"... The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering the entire U.S., reported an 11.2 percent annual gain in January [latest available data], up from 10.4 percent in the previous month. That is the fastest pace for home prices since 2006 ...
The 20-city home price index rose 11.1 percent in January from a year earlier. That’s the biggest gain since March 2014. Prices rose in all 20 cities, and the 12-month increase was larger for all cities in January than in the previous month. ..."
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