Academic

HOUSES: A crappy long-term investment. ?Since 1987, when the Case-Shiller index of 10 major cities?

By Glenn Reynolds

HOUSES: A crappy long-term investment. “Since 1987, when the Case-Shiller index of 10 major cities begins, it’s risen from an index value of 63 to 151. Annual return: Just 4.1% a year. During that period, according to the Bureau of Labor Statistics, consumer prices rose by 3% a year. Net result: Home prices produced a real return of just 1.15% a year over inflation over that time.” That’s certainly been my experience. I bought my first house going on 20 years ago, and over all those years I’ve never made much money.

Full post as published by Instapundit.com on May 27, 2009 (boomark / email).