So multiple that 16x by the typical 4x-5x leveraging, and homes turn out to be really great. And since the transaction fees and the non-existence of index funds in the 1970s made it harder to invest in the stock market at a small scale, and homes were a much better investment.

Add on to that that everybody needs a place to live, and your home acting as an investment vehicle with equivalent performance to the US stock market, and people from the 1970s have had had an amazing deal that younger people have not had access to.

The idea that it’s easy or natural to make money via leveraged housing had ruined many people.

*/5s or even */3s offer an interesting option, depending on terms.

And if you are your own landlord (ie a homeowner) you can pretend your rent is whatever you want, but the market rent is what one should impute as the value of that rent.

1) Historically they have.

2) Most people in the US that haven't purchased very recently are locked in at very low rates. Only 9% of mortgages are over 6%. 61% of outstanding mortages are <4% [0].

3) There are a lot of incentives (and the ability) for governments to ensure home prices continue to increase, although at a rate lower than they are now.

4) We spent over a year with inflation that is double most people's mortgage rates.

5) You have to live somewhere regardless; the alternative is renting. For most of the country, at least until very recently, that was a worse option.

[0] https://apolloacademy.com/the-distribution-of-mortgage-inter...