Because everyone needs to live somewhere, if they don't own a house, they are hurt if house prices (and 'therefore' rents) rise.
To avoid being affected by something external (like house price fluctuations), it makes sense to own a property (or invest in property-related stocks). But only enough to cover your needs.
If you buy a too-big house, or several houses, you'll be in the situation of hoping for house prices rises - meaning that you'll benefit if prices rise - beyond the additional cost that you'll face in the current property markets.
The surprising point of the article is that it is natural to assume that no property = no exposure. But that's not true in the case of housing.
If X is some investment (gold, real estate, Apple Inc. stock, whatever), and I have structured my portfolio so that I would benefit from the price of X going down, then I am “short X”. If I would benefit from the price of X going up, then I am “long X”.
“You are naturally short housing.” = “If the price of housing goes down, you will be naturally be better off.”
I cant figure it out either, but I think it just means that you will always need shelter, so prices going up is bad for you.
At first I took "shorting" literally, and thought it meant I borrowed a house, sold it, and now I need to buy it back at some point. It probably just means "in need of", with a bit of financial connotation?
"Define short"
7. low in amount; scanty: short rations.
9. below the standard in extent, quantity, duration, etc.: short measure.
10. having a scanty or insufficient amount of (often followed by `in or `on ): He was short in experience.
It's literally the last definition there: "having an insufficient amount of." "Shorting" refers to the process of getting to the position of having an insufficient amount, assuming you start neutral or long. He's saying you are "born short", not that you interact in any "shorting."
To avoid being affected by something external (like house price fluctuations), it makes sense to own a property (or invest in property-related stocks). But only enough to cover your needs.
If you buy a too-big house, or several houses, you'll be in the situation of hoping for house prices rises - meaning that you'll benefit if prices rise - beyond the additional cost that you'll face in the current property markets.
The surprising point of the article is that it is natural to assume that no property = no exposure. But that's not true in the case of housing.