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Joined 1 year ago
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Cake day: August 17th, 2023

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  • Can you elaborate on this? I’ve always thought that housing is an absolutely terrible “store of value”. Given the fact that appreciation at a population level, by definition means housing will be less affordable for the next generation. How is value for one generation balanced against subsequent ones. Also, it’s an incredibly inefficient way to build a nest egg or whatever. If you pay a mortgage like most people do, over 15-30 yrs, you’re paying something on the level of 150%-200% of its value over time. It seems to me a more rational way to build value is to keep housing costs low, allowing people to invest that difference (mortgage interest) into either investments or savings, rather than paying it to a bank.

    I get that the US doesn’t really have a culture of saving, but I feel like this is rationalized by the “my house will be more valuable when I retire” crowd. It’s so easy to save now, with efficient investment products broadly available to individuals. Maybe it’s time to let the house as the bulk of your wealth go, and make housing affordable again.