CHICAGO | General Discussions

[west-town-brad]

Originally Posted by LouisVanDerWright

This is categorically false. Single Family Housing has historically had a nominal return in the 2-3% range. Once you account for inflation, the return is essentially zero. It might be your "view", but your view is factually incorrect. You would be much wealthier renting your entire life and piling money into the stock market at 6-8%.

The reason SFH's have a poor return is that people don't actually buy them because they want to invest. They buy them for the freedom to do as they please with their property and for personal enjoyment. This is why the return is so low because people tend to overpay for SFH's like they are doing now.

sorry, no. the leveraged return on a personal residence is not nominal