Good point AN. Yes if we get a case of balanced inflation, that is, prices go up, wages go up, etc… then I agree with you.

As you know we have seen price inflation in food, water, energy etc without the corresponding wage inflation as well as a serious lack of quality job creation. (excluding government jobs of course). As I have been on substantial domestic travel the past few years, it is very evident just how unique San Diego is and how exceptional the real estate market is out here. You combine employment, climate, and the demand for certain school districts, and you get a situation where justification for depreciation cycles is very challenging.