Robert Shiller, an economist at Yale, won a Nobel Prize in 2013 for his analysis of asset prices, and his name is half of the much-watched Case-Shiller Index of housing prices. It turns out, he's not too enthusiastic about home ownership, either as a lifestyle choice or an investment. Buying a house is "like a consumption choice, it's not really an investment," he tells Money magazine's Susie Poppick in the video below.
Renting, especially if you don't have a steady job or don't plan to be in the same place for 10 years, "is just going to make your life easier," he said. There are some instances in which buying makes sense, but home ownership is like parenthood, he added:
As for whether we're now in a new housing bubble, Schiller said probably not. The market is "bubbly in places," like San Francisco, he said, but "it's not as enthusiastic as it was, say, in 2005." You can watch the entire short interview below. Peter Weber
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Create an account with the same email registered to your subscription to unlock access.