I don't own a house, but here is how I would justify it: I assume (and you are free to disagree with my assumptions): - Inflation will exist like it has over

I don't own a house, but here is how I would justify it: I assume (and you are free to disagree with my assumptions): - Inflation will exist like it has over the long term - I need to save for retirement --- With these two assumptions, a home allows you to take a leverage position against the area in which you live in's rate of inflation (hedge against rent increases with 4x leverage). Additionally, if you commit to paying down your home, you are deleveraging over a long period of time. If you stay there for 30 years, you can live almost rent free. (you will still need to pay expenses), and will increase your buying power dramatically. If inflation doesn't exist, or doesn't exist in your market, i.e. Buffalo, you are screwed. But, if you use an expected value, and a long-term history of what has happened, you are making a logical investment. *additionally, in the US you get a nice tax savings from the interest which ends up having a pretty good value in and of itself. Obviously, you can alter the assumptions and come up with different investment ideas, but in general, housing is at least logical.