Daniel Hertz

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Housing cannot be a good investment and affordable at the same time

Promoting homeownership as an investment strategy is a risky proposition. No financial advisor would recommend taking on debt to put such a large portion of your savings into a single financial asset, whatever it may be, as it represents a major concentration of risk.

Worse still, this risk is not random: it falls most heavily on low-income buyers, who receive worse financing terms and whose neighborhoods are systematically more likely to have lower or even declining home values, leading to devastating consequences for the racial wealth gap.

Subscriber Access

Housing cannot be a good investment and affordable at the same time

Promoting homeownership as an investment strategy is a risky proposition. No financial advisor would recommend taking on debt to put such a large portion of your savings into a single financial asset, whatever it may be, due to the high concentration of risk.

Worse yet, this risk is not random: it falls most heavily on low-income buyers, who receive poorer financing terms and whose neighborhoods are systematically more prone to lower or even declining home values, leading to devastating consequences for the racial wealth gap.