Home Ownership As An Investment (More)

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Last week I discussed the notion of home ownership as an investment, something which has been a good choice for many Canadians over the past decade or so, although it’s been a questionable choice for many Americans, putting aside the run-up in housing prices in the US during the pandemic.

This week I provide links to two additional articles on this topic, both from an US perspective. The first article (see the following link) is from the same source as last week’s article, City Observatory, and seeks to explain why “there’s a 30% chance your house will be worth less in five years.” Again, this is from a US experience, but I think it’s worth a look.

The second article is from an investment firm which conducted research by comparing house price volatility (using their own formulas) to the stock market. Download their “executive summary” from the following link.


Both articles date from 2019, before the run-up in house prices in the US during the pandemic, so there’s a certain amount of bearishness in both articles. The data might look a bit better today, although it remains to be seen if the current run-up in house prices is sustainable.

For a Canadian perspective, readers should check out my post dated June 30, 2021 titled “To Rent Or Not To Rent” in which I discussed an analysis written by an Ottawa-based portfolio manager.