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Originally Posted by hobart
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"Currency devaluation" has little or nothing to do with the increase in the prices of investment real estate and, thusly, rents.
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It accounts for about 75% of the increase tho.
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1031 exchanges combined with historically low capital gains, the ability to take accelerated depreciation, cost segregation, and increases in property taxes, continue to drive the demand for investment real estate and continue to encourage people to take gains 3-5 years into the ownership cycle. And now that you've sold, you can overpay up to 38% more than the market value on the property you're re-investing in and still come out ahead...
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Given that currency devaluation adequately explains around 75% of appreciation in housing prices, the collective influence of these items account for around only 1/4 of the increase.