A home is more than an investment. You live in it. Homes aren't competing with other investments, they're competing with renting or being homeless in some form.
> Homes aren't competing with other investments, they're competing with renting or being homeless in some form.
If you have $1 million, you can buy a house and live in it "for free" or you can buy stocks/bonds/ETFs, maybe earn $50k a year in dividends and capital gains, rent a place for $30k a year, and pocket the difference.
So yes, buying a home does compete with a combination of (other investments + renting).
Sure they are. If homes are cheap, you buy a big home and save little. If homes are expensive, you invest in a car and commute or buy a "cute and cozy" home, and invest the rest.
If you have $1 million, you can buy a house and live in it "for free" or you can buy stocks/bonds/ETFs, maybe earn $50k a year in dividends and capital gains, rent a place for $30k a year, and pocket the difference.
So yes, buying a home does compete with a combination of (other investments + renting).