The Real Deal Miami

Homebuying loses investment cache

August 23, 2010 01:30PM

Stan Humphries

Once seen as a rock solid wealth-building method, homeownership is
losing its cache among investors and economists in the wake of the
housing market crash, according to the New York Times. While many
investors once assumed that home values would appreciate — barring
unforeseen influences like neighborhood decline and natural disaster —
that logic has been turned on its head, according to Stan Humphries,
chief economist with real estate website Zillow.com. “There is no iron
law that real estate must appreciate,” Humphries said. “All those theories [that] advanced during the boom about why housing is special… didn’t hold up.” [NYT]