"This is the only asset class with significantly above average gains for decades." One can't just look at the increase in value of Real Estate over time, one m

"This is the only asset class with significantly above average gains for decades." One can't just look at the increase in value of Real Estate over time, one must also consider the cost of holding that asset. Unlike many other assets Real Estate is very expensive to own (taxes, maintenance, mortgage interest). That all adds up. Over the long term it's typically better to own than rent (in part because our tax system significantly favors owners over renters). However, people that talk about buying more house than they need (or a far more expensive house than they need) and then say "but it's an investment so it's OK" usually have no clue. Long term it's hard to consistently 'make' money on a home you live in. Commercial or investment real estate is a whole different ball game... but when it comes to your own home the best financial decision is usually to live modestly (and understand that a bigger or fancier house is a cost and no "an investment").