[Paracompact]

The borrowed money isn't free from interest. There's no numerical sense in borrowing money at 5%+ interest to fund an investment appreciating at 3%. Some schemes might advantage it further (such as leveraging your mortgage with your retirement funds) but then we might as well also discuss further disadvantages compared to renting, such as upkeep and property taxes.

Back around 2020 when mortgage rates very briefly dipped below 3%, there could have been an argument. But such is no longer the case and not likely to return soon.

This guy breaks down the analysis very cleanly to a first-order approximation, using 2019 figures: https://www.youtube.com/watch?v=Uwl3-jBNEd4

> It's a choice between $1m in housing appreciating at 3% or $100k in stocks appreciating at 9%.

Just to drive the point home: It would be $100k in stocks appreciating at 9% and monthly rent subtracted, or $1m in housing appreciating at 3% and a $900k debt growing at 5%+ interest.

[sdellis]

I agree with your points. You have to take risks in either case, but some risks are easier to do the math on. And yes, fewer home investment opportunities exist as the interest rates go higher. There may be opportunities for higher gain with stocks, but there are also greater risks for loss. At least if you lose some value in a home, it's practical -- you still have a roof over your head or make money by renting it.

[jstanley]

Fair point!