6min chapter

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Optimal Allocations to Owned Housing & Gender Equality in Financial Planning (EP.209)

The Rational Reminder Podcast

CHAPTER

The Risk of Owning a Home

Housing is treated by investors as a risk free asset, which is why they're willing to allicate so much to it. Owners lock in future housing services cost by paying the non up front cost of a home. For a short stay, rent is less risky. But over shorter periods of time, if rents are risky er in a given location, or if there's a lot of rent volatility, owning should be more attractive.

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