It's more complicated than that since the cost of housing is included in "official" and unofficial inflation numbers (33% of US Consumer Price Index is housing). So multiplying by the inflation rate and comparing to the current market is circular.
A better indicator might be the inflation in the money supply over that same period, but idk I am not a finance guy.
> It's more complicated than that since the cost of housing is included in "official" and unofficial inflation numbers (33% of US Consumer Price Index is housing).
No, the costs of homes-as-assets is not included in CPI (the cost of housing-as-a-consumed-service, rent, either as paid by renters or as foregone by resident homeowners, is.)
> So multiplying by the inflation rate and comparing to the current market is circular.
No, even if it was a CPI component (as all consumer goods are), it would still be correct to use the whole CPI to get its inflation adjusted price.
> A better indicator might be the inflation in the money supply over that same period
No, while money supply changes have an effect on consumer prices, if you are looking for a price deflator for purchasing power equivalence, the CPI or other broad price index (PCE, etc.) is a much better choice, even for consumer goods that will be components of the index.
The CPI also shows what categories within it have moved. It would take more effort to calculate since none of the calculators online have that option, but it could be done.
