Housing as Investment

The problems com from people profiting from "owning" housing. It shouldn't be an investment, period.

honestly yes. Turning housing into a financial vehicle makes it hard for average people to afford. Housing cant simultaneously be affordable perpetually for average citizens and a investment expected to appreciate in value higher than inflation. trying to have our cake and eat it to has broken the housing market and been the root cause of much suffering and the last big economic rescission.

The core problem here is that so much value is tied up in houses. People view houses as an investment. If houses depreciated like cars then people aren't so concerned about the value of there house b/c it won't make or break retirement. Any long term housing solution needs to find a way of preventing houses from becoming investments.

They wouldn't be buying houses if houses weren't an appreciating asset. Let's change that.

We should build more housing so that homes aren't such good investments that people are tempted to do this.

But the problem of your friend is not that you treat your house as an investment.By definition, if people "invest" in goods that can be produced at a certain price, then production should kick in and restore balance. In a functional housing market you shouldn't be able to get a better appreciation of housing than the inflation rate, except for perhaps some very limited and irreplaceble houses in the Hamptons or designed by famous architects.Housing should behave much

Most of the hosung boom happened post WWII. Back when there were only 1billion people. They couldn't have expected 7billion. And because there are more prople, there is more competition to own homes and that is what is allowing homeowners to be able to treat it as a asset. It is an asset and it is worth what others are willing to pay. So they also have no reason to support more housing as it negatively affects their bottom line. So they buy more housing based on their good credit from home

The problem is that it gets harder and harder for normal people to own anything ( build up wealth), while building wealth is the best retirement startegy there is.This is the problem in a nutshell! It’s impossible for houses to continue to be great “wealth building” vehicles and for them be affordable. Politicians have prioritized the former and that’s how we got where we are.If we want affordable housing for people to live in they can’t also be the universal investment vehicle. Th

I feel like it is the point. The claim being made is incorrect.If you have to invest a significant amount of capital to own housing and it isn't a good investment then people won't want to do it. But there are reasons we want to encourage home ownership, so if it actually wasn't a good investment then that would be bad. People would stop doing it. So it's important that the claim actually is incorrect; it can still be a good investment even if the value never goes u

It seems that we made a pact with the devil by positioning housing as an investment asset. By doing so, we've encouraged people to commit a very large fraction of their net worth into a rather illiquid asset, tying their financial fates to the future assessment of that asset. As a result, protecting the price and appreciation of this asset has come to overshadow the other crucial roles that housing plays in our society.If I bought shares in AAPL at $50 (now $100+) and someone comes along