{"id":14788,"date":"2011-07-12T09:17:13","date_gmt":"2011-07-12T16:17:13","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=14788"},"modified":"2011-07-12T09:17:18","modified_gmt":"2011-07-12T16:17:18","slug":"wall-street-journal-a-home-is-a-lousy-investment","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14788\/wall-street-journal-a-home-is-a-lousy-investment\/","title":{"rendered":"Wall Street Journal:<\/em> “A home is a lousy investment.”"},"content":{"rendered":"

Ahem: “Today’s young people would be foolish to imitate their parents and view ownership as the cornerstone of personal finance.”<\/p>\n

<\/p>\n

From the Wall Street Journal:<\/em><\/a><\/p>\n

At the risk of heaping more misery on the struggling residential property market, an analysis of home-price and ownership data for the last 30 years in California—the Golden State with notoriously golden property prices—indicates that the average single family house has never been a particularly stellar investment.<\/p>\n

In a society increasingly concerned with providing for retirement security and housing affordability, this finding has large implications. It means that we have put excessive emphasis on owner-occupied housing for social objectives, mistakenly relied on homebuilding for economic stimulus, and fostered misconceptions about homeownership and financial independence. We’ve diverted capital from more productive investments and misallocated scarce public resources.<\/p>\n

Between 1980 and 2010, the value of a median-price, single-family house in California rose by an average of 3.6% per year—to $296,820 from $99,550, according to data from the California Association of Realtors, Freddie Mac and the U.S. Census. Even if that house was sold at the most recent market peak in 2007, the average annual price growth was just 6.61%.<\/p>\n

So a dollar used to purchase a median-price, single-family California home in 1980 would have grown to $5.63 in 2007, and to $2.98 in 2010. The same dollar invested in the Dow Jones Industrial Index would have been worth $14.41 in 2007, and $11.49 in 2010.<\/p><\/blockquote>\n

No need to pass these facts along to the National Association of Realtors. They already know.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ahem: “Today’s young people would be foolish to imitate their parents and view ownership as the cornerstone of personal finance.” From the Wall Street Journal: At the risk of heaping more misery on the struggling residential property market, an analysis of home-price and ownership data for the last 30 years in California—the Golden State with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29,8,5,30],"tags":[],"class_list":{"0":"post-14788","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-group-therapy","7":"category-investment","8":"category-real-estate","9":"category-supplanting-the-nar","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":14488,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14488\/housing-might-not-be-a-good-investment-but-its-not-a-bad-hedge-against-inflation\/","url_meta":{"origin":14788,"position":0},"title":"Housing Might Not Be a Good “Investment” But It’s Not a Bad Hedge Against Inflation","author":"Brian Brady","date":"April 26, 2011","format":false,"excerpt":"Debra and I had the good fortune to met Anthony Randazzo at a Reason Foundation dinner last week.\u00a0 Mr. Randazzo published an article today, about real estate as a \"store of value\" (which was consistent with what we've been talking about here on BloodhoundBlog). Few people will dispute that more\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18079,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18079\/how-to-fix-florida-homeowners-insurance-costs\/","url_meta":{"origin":14788,"position":1},"title":"How To Fix Florida Homeowner’s Insurance Costs","author":"Brian Brady","date":"April 25, 2021","format":false,"excerpt":"This morning, The Wall Street Journal sounded the alarm about the ticking time bomb in Florida real estate.\u00a0 It's behind a paywall but I will try to highlight some key points for you: 1- Florida homeowner insurance premiums are increasing by a double-digit percentage 2- Insurance companies are withdrawing from\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1566,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1566\/how-do-you-get-to-carnegie-hall-practice-how-do-you-get-to-the-wall-street-journal-online-genius\/","url_meta":{"origin":14788,"position":2},"title":"How do you get to Carnegie Hall? Practice! How do you get to the Wall Street Journal Online? Genius . . .","author":"Greg Swann","date":"June 22, 2007","format":false,"excerpt":"Michael Cook's post on Private Equity investing was picked up as a related-info link by The Wall Street Journal Online. We've been linked from a lot of interesting places, but I think this is the new high-water mark... Technorati Tags: blogging, investment, real estate, real estate marketing","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1667,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1667\/the-800-pound-gorilla-in-the-corner-the-meltdown-of-the-wall-street-mortgage-market\/","url_meta":{"origin":14788,"position":3},"title":"The 800 pound gorilla in the corner – the meltdown of the Wall Street mortgage market","author":"Morgan Brown","date":"July 16, 2007","format":false,"excerpt":"As we go about our daily lives in the mortgage and real estate world; dutifully performing our job functions and taking the high road of customer enlightenment via blogs such as Bloodhound; we are faced with a very large gorilla looming in the corner of our workplace. That gorilla is\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1661,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1661\/missed-fortune-and-the-wall-street-journal-the-value-of-a-50-cent-financial-planner-isabout-a-half-a-buck\/","url_meta":{"origin":14788,"position":4},"title":"Missed Fortune and the Wall Street Journal: The Value of a 50 Cent Financial Planner Is…About a Half a Buck","author":"Brian Brady","date":"July 15, 2007","format":false,"excerpt":"One of the tenets of financial advisory is the principle of fiduciary responsibility. Today, Wall Street Journal reporter, Jonathan Clements, openly criticizes the strategy Doug Andrew outlines in his best-selling book, Missed Fortune. Mr. Clements' article, When the \"Self\" in Self-Interest Isn't You, attacks the strategy as being completely self-serving\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14070,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14070\/farewell-to-fannie-and-freddie-hold-your-breath\/","url_meta":{"origin":14788,"position":5},"title":"Farewell to Fannie and Freddie? Hold your breath…","author":"Greg Swann","date":"February 8, 2011","format":false,"excerpt":"The Obamanation plans to offer up three proposals to eliminate FannieMae and FreddieMac from the secondary mortgage marketplace. Expect to hear much mournful keening, in coming weeks, from the country's best enemy of private property, the National Association of Realtors. From the Wall Street Journal:More than two years after the\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=14788"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14788\/revisions"}],"predecessor-version":[{"id":14789,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/14788\/revisions\/14789"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=14788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=14788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=14788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}