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A home is more than an investment. You live in it. Homes aren't competing with other investments, they're competing with renting or being homeless in some for

• Scoundreller 10y ago
  Sure they are. If homes are cheap, you buy a big home and save little. If homes are expensive, you invest in a car and commute or buy a "cute and cozy" home, and invest the rest.
• aianus 10y ago
  > Homes aren't competing with other investments, they're competing with renting or being homeless in some form. If you have $1 million, you can buy a house and live in it "for free" or you can buy stocks/bonds/ETFs, maybe earn $50k a year in dividends and capital gains, rent a place for $30k a year, and pocket the difference. So yes, buying a home does compete with a combination of (other investments + renting).
  • nemo44x 10y ago
    And after taxes on your gains you can pay your rent and live for free. Sounds similar but I guess that's the market at work.