Inflation's been normal? Maybe we don't share the same reality. Let's continue with the USA, which previous commenters have be referencing.
The median price of a US home has gone up 45% [1] since 2008 when The Fed started "printing money hand over fist". Did the quality of all homes suddenly go up by 45% in lockstep? I would doubt that. It could be that all people started to be more productive simultaneously, and despite an aversion to paying a premium on housing, the price increase is merely a symptom of a supply-restricted market -- and yet Median incomes (household, individual) only increased (26%[2],28%[3]).
The US is experiencing at least 13% and practically 45% asset-price inflation over the period you referenced. I would hardly say that's "normal". It's the sign of a dying currency -- one that cannot maintain its long term purchasing power. [4]
>Classical economics no longer correctly models reality.
Economics is not physics -- it's an intangible process of action, human action. One cannot make an economic model of the utility I get from the sloth of laying in a field on a warm day, even if it means I'll be less robust against a winter storm. "Ce qu'on voit et ce qu'on ne voit pas" and TNSTAAFL still hold despite what the central planners decree.
[1] https://dqydj.com/historical-home-prices/ [2] https://dqydj.com/household-income-by-year/ [3] https://dqydj.com/individual-income-by-year/
[4] Living in a home is a consumptive act: Using land, material, past labor for one's enjoyment. It is not "investing". One may try to reduce the costs of that consumption by buying the house etc.