Scared of Stocks? Buy a House Instead
New research by UC Davis economist Alan Taylor shows that real estate is both a better and safer investment than previously believed.
The authors of the study—Taylor, Òscar Jordà and Moritz Schularick—have constructed a new database for the U.S. and 15 other advanced economies, ranging from 1870 through the present. Their striking finding is that housing returns are about equal to equity returns, and furthermore housing as an investment is significantly less risky than equities.