That is only for a 3-4 years period.Except for "recently", US home prices basically tracked inflation..A person agnostic about US vs. ex-US. but interested in diversifying from the S&P 500, might wonder if US residential real estate makes sense. We hear that it also did well in the 1970s - another harrowing time for US stocks (but better for ex-US... notice a pattern?). Joe and Jane Doe already own their own house, and a handsome house at that. That's their diversifier. No need for any exotic dabbling. Rufus has 3 or 4 times more net worth than the Doe family, but owns no real estate. Rufus is left wondering about his options.
https://www.multpl.com/case-shiller-hom ... n-adjusted
Real estate is a great hedge against inflation doesn’t mean the yearly price growth of your house goes more than inflation - that’s not how most people see it. It is a great hedge against inflation because it is your biggest fixed cost and is fixed for 30 years.
Statistics: Posted by vv19 — Sat Jan 11, 2025 4:14 pm — Replies 8435 — Views 1805174