01 May 2012
U.S. house prices unchanged... since 1895
When adjusted for inflation. The graph (based on data from Robert Shiller) emphasizes the point that houses are consumable items composed of consumable items - "Houses are ordinary consumable goods: wood, stone and metal bound pieced together through labor. There's no reason to believe they should enjoy a special rate of return distinct from those for, say, apples and shoes."
The bottom line is that houses should be bought (or not bought) based on a individualized calculation of its utilitarian value - not as an "investment" to profit from.
Via Smart Money.