The primary reason why people won't stop looking at housing as an investment vehicle is that it is the only way you can go to a bank and say "Loan me $500,000 f

The primary reason why people won't stop looking at housing as an investment vehicle is that it is the only way you can go to a bank and say "Loan me $500,000 for an investment". If you said that you wanted $500,000 to play the stock market they'd laugh you out of the door. So for the average person in the street it's the only way to get significant leverage. Edit: I agree with your premise btw, I despise the culture that's been created here in the UK with regards to home-ownership. People here still don't believe that house prices can drop significantly, and the amount of TV programmes about buying a house, renovating a house, or selling a house for more than you paid for it is ludicrous. What frustrates me even more is during the run up to the crash I was standing my ground that they were overpriced, and there must be a correction soon. So I continued to rent. And now that I'd like to buy I need close to £100,000 deposit to buy a place similar to the one I rent (20% deposit required for places over £400,000). The fundamentals just don't stack up. UK average wage: £26,500 UK average house price: £242,415 So that requires a mortgage 9.14 times the individual's average wage, or 4.57 times a couple's average wage. It seems to me we have a way to fall yet. However the UK is short of houses. So who knows!