Why I Don’t Invest in Real Estate

It Won’t Be What It Used To

Real estate has been a great investment for so long that people think it always will be. This is a mistake. I don’t think it will.

Powerful forces have been raising housing prices for decades. But they are now petering out, even reversing. As time passes, housing prices might shrink.

To understand this, we need a very simple rule: the law of supply and demand.

This article refers mainly to developed economies.

Have Housing Prices Always Gone Up?

No.

But you wouldn’t know that, because all your life, housing prices have grown:

Our living memory of housing prices only goes back to the 1950s. In that time, real housing prices have quadrupled. But what happens if we look a bit farther back in time?

Prices only started growing after 1950!