2min chapter

Many Happy Returns cover image

Surreal Estate: How far will house prices fall?

Many Happy Returns

CHAPTER

Is Owning a House a Good Investment?

If you own the exact amount of housing that you expect to use, then your net asset position is neutral. By buying a house, we've effectively gone neutral, neither long or short. In contrast, the person who owns one home is hedged. If house prices go up or down, it doesn't affect their consumption.

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