The result is an even deeper inflation than what we already suffer from.

I work with OOS investors from similar west coast inflated markets to make some passive income here on great properties!

We're likely in decent shape the next year or so, but in my mind, inflation will be key to watch. higher inflation will mean higher rates- may be good for property values if the overall economy stays strong, but inflation will likely raise interest rates. 

Wednesday’s November CPI report gave us a peek at inflation, and it’s not terrible. Headline inflation ticked up from 2.6% to 2.7%, while core inflation—the one that ignores things like your weekly gas price mood swin...

Same result as above.A third alternative is forced inflation.  

This is largely due to the fixed nature of ongoing maintenance costs, which become proportionally more impactful as the park size decreases, thereby inflating the expense ratio.

Case in point: Inflation is still sticky, like my sourdough bread leaven.

The historical appreciate indicates it will not keep up with inflation and therefore loose value in inflation adjusted dollars.  

A market like Boston has a long track record of appreciation in excess of inflation/cpi.  

That's without figuring in tax benefits, increasing revenue per year with inflation, picking a market with more appreciation potential, making more than $1K/month profit (very doable) etc that could supercharge those numbers even more.