yes, it's unfortunate that we lose sight of the main purpose of a home: to be a safe place to live and commune with others, not a cold financial instrument. wh

yes, it's unfortunate that we lose sight of the main purpose of a home: to be a safe place to live and commune with others, not a cold financial instrument. when you think about how housing prices should change, you'd expect it to correlate with a macroeconomic growth measure like gdp or inflation. if it doesn't, then you'd probably first expect something obvious like (1) many people are looking for homes (high demand) (2) people are fighting fiercely for prized urban properties (focused demand/limited supply) (3) we've run out of land/homes (short supply) but rather, it's excess capital chasing excess returns, to accumulate more excess capital, with no thought to the underlying asset.