Why do we think property prices always go up in the long term?

[Amby Bhagtani]

I have a very basic question (almost sounds silly), I keep hearing property prices always go higher in the long term (not referring to short term fluctuations). Apart from that's how its been historically can someone explain to me how this works, when the worlds population maybe at the verge of declining. 

[Ryan Kelly]

@Amby Bhagtani one word - Inflation. Hamburgers used to be $0.15 in the 1950’s and are now $10-$12. Why? The cost of materials and labor to make the burger steadily rose each and every year with inflation. Housing is no different. The average new home coasts builders 10x what it cost them 40-50 years ago to build. This will keep going through the course of time. Markets will inflate at different rates, but overall housing will steadily get more expensive because the dollar will continue to lose value, so you’ll need more dollars to buy the same things in the future.