Michael Burry: U.S. Residential Real Estate Returns Only ~4.5% Annually, Lags S&P 500 by 400%

According to Business Insider on July 14, investor Michael Burry stated in a Substack post that U.S. residential real estate generates approximately 4.5% annualized after-tax returns over 50 years when maintenance costs are included, comparable to bond yields. Burry noted that despite U.S. median home prices rising 140% since 2001 (from ~$170,000 to ~$403,000), the S&P 500 index surged over 400% in the same period. He emphasized that while housing offers stability and quality-of-life benefits, its value as an investment is limited, and the primary advantage of homeownership lies in lifestyle benefits rather than financial returns.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments