- While stock prices have outperformed land/housing since the Industrial Revolution (1800s), the overall returns are closer when you include rental income and compounded savings from owning a primary residence over time.
- Also, stock vs housing price returns vary by nation; stocks in the US and UK have historically outperformed, but land has led in France, Germany, and Japan.
- However, since widespread homeownership is relatively new, historical housing prices are less reliable.
- Discriminatory homeownership laws created America’s current racial wealth gap.
