Only if you don't maintain them and find someone willing to restore them. For instance, if you had an old Ford Mustang, like 1970 and kept it in your backyard, it would still most likely be worth a lot of money, but if we count in inflation, it wouldn't be that much more than it costed 50 years ago. On top of that it would be rusty and need a new paint job, new wheels, and all rubber parts would have to be replaced. So the car would be undrivable without at least 10k USD being thrown into restoration. It's not a great investment.
This trend could make real estate a bad investment as it could imply demand will decrease yearly on the dwindling buying power of consumers. Decreases in demand could translate to lower prices being necessary to sustain purchasing volume.
If you take ad valorem tax into account, owning a real estate can potentially bankrupt you. Imagine having to pay 1% of its value a year as tax and the government decides to value the property ridiculously high. This can suddenly happen if something that adds value to your property is built nearby. For instance, the area around your land becomes a national park, which means that nothing can be built, so you will never have noisy neighbors or a factory built nearby. If the value of your land doubles so will the tax. This is an extreme situation but we all know that strange things have a tendency of happening in the most unexpected moments.
I'm actually not sure about this part. Just a couple examples that could make your apartments completely worthless:
A natural disaster (flood, earthquake)
A problem caused by tennants (fire, gas explosion)
A war
Sure, you can insure them, but this will reduce your earnings and the insurance will never cover 100% of the damages.