The New York Times has an interesting article about the housing market, speculating that it may no longer be a way of building wealth. Here’s the (link) to the article.
The gist of the article says many real estate experts believe that while the U.S. will eventually recover from the current downturn in the real estate market, home ownership will never again yield the nest-egg type appreciation seen in the second half of the 20th century. In the coming years, housing values will only keep up with inflation, according to several experts, including Stan Humphries, chief economist for Zillow.
The article also paints a picture of how the notion of using housing as an investment came about after World War II.
What do you think? Will we ever seen the “home is an investment” mentality in the coming decades? I was told (quite often) that dirt (or property) is something we’re not making any more of, so it’ll go up in value in the long run. Is that still the case?