Despite all the theories, we have gone through all the ups and downs and still got more than 10X. It is a matter of record that historically real estate has been a good long-term investment and the supply is limited.Yeah but that 10X increase is only due to the low inventory on the market combined with low interest rates. Once interest rates start going up that starts taking some people out of the equation, mostly those looking for a place to actually live. The people investing for rental income tend to do better because they're usually well enough off to handle the interest rates as they first go up. At some point though, if interest rates keeping going up to more traditional rates then it gets expensive even for the investors and they start to back off and wait for rates to go down again. If building new houses gets back to what it should be to meet the demand that's going to start to reduce the value of houses downwards. At least that's how it used to be, this go around during the inflation houses held therir value better then many expected. So in the end it really depends on if the market continues to behave unusually or if it gets back to more traditional patterns.
Point of fact, the current demand for housing is greater than the existing inventory and it is also becoming uber expensive to build new housing.