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Investing in real estate like that is just making it fractional harder for you to ever buy a house too. You can have investment diversity without a reit in the same way you can have a full meal without french fries.
Pardon the whataboutism, but what about things like industrial and office REITs? Would you say that has any impact on the price of housing?
Probably less bad but I might still be a little squicked out by it. You need to talk to someone smarter than me for a clearer and more insightful answer.