Comment by mikem170
8 days ago
One factor: It's an investment that you can get for 20% down, or less. You can't borrow that much to gamble in the stock market. All is well as long as the value of the house doesn't go down.
People like the idea of making money. They are used to real estate always increasing in value.
We'll see what happens as boomer demand ages out.
And the loan is heavily subsidized by the federal government (and frequently by other governments as well).
US policy is to make real estate a fundamental part of Americans wealth. It’s worked! Since the policy started we’ve gone from hovering in the 40% homeownership rate to hovering in the mid 60s.
It’s also made housing expensive and homogeneous.
Even with subsidies taken into account, the ROI is still higher with stocks and the risks a lot higher with properties. 401k is also subsidized. See studies.
I understand that there may be arguments individually for the decision and emotional safety is one, but it should be based on fact, not myth and misunderstanding.