Financial Times, August 15, 2017, by Matthew C Klein.

“Residential real estate, not equity, has been the best long-run investment over the course of modern history.”

“Using a new set of data they constructed by hand from news articles, advertisements, statistical abstracts, and more, they estimated the investment performance of deposits, government bonds, residential real estate, and stocks across 16 rich countries.”

“There is no comparable explanation for why housing has historically been such a better investment than stocks. Yes, it’s much harder for the typical retail investors to construct a diversified portfolio of residential real estate than a broad basket of equities, but most wealth isn’t held directly by regular people.”

Read the full article here.