Investing the largest chunk of cash in a home may not represent a real return on the money, while it could be used in accounts like fidelity, vanguard, or TIA that yield returns and make profits. Historically, the stock market has risen substantially faster than house prices, challenging the myth that homeownership is superior to renting. Housing should not be considered a foolproof or guaranteed investment, especially when compared to the potential returns from stock market investments.
For many millennials, buying a home has become almost entirely out of reach. Average 30-year mortgage rates are hovering around 7 percent — the highest they’ve been since 2007 — largely because of the Federal Reserve’s efforts to tame inflation.
David Leonhardt, a senior writer for The New York Times, discusses whether it is time to change how we think about buying vs. renting.
Guest: David Leonhardt, a senior writer for The New York Times. He writes The Morning, The Times’s flagship daily newsletter, and also writes for Sunday Review.
Background reading:
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