Real estate makes up a majority of household wealth
To rent or to buy鈥攖hat鈥檚聽the dilemma facing many today. Real estate prices are at historic highs, and elevated interest rates have pushed up the cost of homeownership. At the same time, stock markets have delivered strong returns in recent years. Beyond these financial pressures, the nature of homeownership itself adds another layer of complexity.
As Sebastien Betermier,聽an Associate Professor of Finance at 秀色直播 Desautels聽explains, 鈥渁 house is both an investment, since one hopes to earn a profit from it, and a consumer good, because it is used by living in it 鈥� which makes the analysis more complicated.鈥� It also聽represents聽a disproportionately large share of most homeowners鈥� portfolios. In the United States,聽roughly two聽thirds of household wealth is tied up in real estate, according to research by Betermier.
