Re:TerraUSD crash led to vanished savings, shattered dreams
by gruez on Tuesday June 21, 2022 @10:05PM
(#31831286)
>does nothing meaningful for people who are priced out by the 10-15% y/y gains on housing
Housing never had gains that high. Looking at the rise from the last trough (ie. 2009 to today) works out to 5.3% annualized nationwide[1]. Meanwhile the Vanguard Total Stock Market Index Fund returned 12.4% in the same time period. If you look around at a few different metros, there are many cities that return higher (eg. 7.5% for LA[2]), but none are anywhere close to returns for the index fund. The best I found was arizona[3] with 9.1%.
Housing never had gains that high. Looking at the rise from the last trough (ie. 2009 to today) works out to 5.3% annualized nationwide[1]. Meanwhile the Vanguard Total Stock Market Index Fund returned 12.4% in the same time period. If you look around at a few different metros, there are many cities that return higher (eg. 7.5% for LA[2]), but none are anywhere close to returns for the index fund. The best I found was arizona[3] with 9.1%.
[1] https://fred.stlouisfed.org/series/CSUSHPINSA
[2] https://fred.stlouisfed.org/series/LXXRSA
[3] https://fred.stlouisfed.org/series/PHXRSA