Monday, April 15, 2013

"Invest" In Housing? Real Home Prices Up 0.2 Percent Per Annum 1890-1990.

So warns Robert Shiller, here:


"Home prices look remarkably stable when corrected for inflation. Over the 100 years ending in 1990 — before the recent housing boom — real home prices rose only 0.2 percent a year, on average. The smallness of that increase seems best explained by rising productivity in construction, which offset increasing costs of land and labor."