09/10/2026
US Homes and Investing: Key Tradeoffs
After 26 years in real estate, I’ve seen plenty of debate about whether a home is the ultimate investment. Looking back over 80 years, US home prices have barely outpaced inflation—less than 4% annual appreciation. Meanwhile, stocks have averaged 7–10% before inflation and 4–6% after. What’s often overlooked are the real costs of homeownership: property taxes, insurance, ongoing repairs, and the impact of changes in your neighborhood or local economy.
Still, a home offers something beyond numbers. It’s about family stability, keeping kids in the same schools, and the steady discipline of paying off a mortgage. That’s real value, even if the house itself isn’t your highest-earning asset. And as for the old belief that renting is just throwing money away—sometimes, renting is actually more cost-effective and means less hassle with repairs.
In my experience as a residential specialist, I always encourage clients to think of a home first as a place for quality of life and stability, not just a spot in an investment portfolio. That’s where the true reward lies.
