Hey, I wanted to respond to your comment from 18 days ago but responses there have already been disabled (so I'm hijacking this comment). The question was about

Hey, I wanted to respond to your comment from 18 days ago but responses there have already been disabled (so I'm hijacking this comment). The question was about "> Housing market returns are very bad. Between 1948 and 2004 the real increase in value in the U.S real estate market was less than 1% a year." versus the "Return on everything" paper from 2018. (https://news.ycombinator.com/item?id=25585224 https://news.ycombinator.com/item?id=25585224) On page 85 of the paper, they actually point out that the real capital gain is ~0.7-0.9% per year on average (with a huge standard deviation of 8%, since it's very market specific), which seems to agree with the submitted article, but that the rest of the return, 5.33% (stddev: 0.8%) comes from rental yield (of course in the case of your own house that becomes money saved from not paying rent). Those two added together are what give the total rate of return on housing.