Faculty Publications

Title

Why Housing Is A Bad Long-Term Investment But You Should Buy Anyways

Document Type

Article

Publication Date

9-25-2014

Abstract

Homeownership was once considered a staple of the ‘American Dream’ and a sure sign of financial stability in the United States. The principal residence accounts for nearly 62% of the median homeowner’s total assets in the United States and makes up nearly one-third of all assets held by U.S. households. While housing decisions remain as some of the most important decisions facing Americans, it is not unanimously assumed that homeownership is the best financial course of action. This sentiment is demonstrated in part by the U.S. Census Bureau’s July 29, 2014 Report which noted that homeownership fell to a nineteen year low of 64.7% in the second quarter of 2014.