Shiller on Housing

Written by Jim the Realtor

June 29, 2015

Shiller discussing who should buy a house – those who have stable employment!

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.

4 Comments

  1. Susie

    Jim, my “tech guru” son has VERY stable employment. At the age of just 29, he makes over 6-figures. Not here to brag. On bubbleinfo, it’s all about real estate.

    I encouraged him to buy something and live in it for two years because real estate where he lives is increasing by leaps-and-bounds. Won’t do it. Doesn’t know if he will be staying in that city long-term. So he continues to rent.
    But there’s hope. He and his sister decided to live together. Right downtown–where they love it. Daughter already moved in; he moves in today. Have a 1-year lease from June 1st.

    He pays more of the eye-popping rent: $1,800/month for 2/1 and 749 sq. feet. Crazy, right? But newest listings for 1/1 639 sq. foot apartment in same building has increased to $2,050 in last month. It’s a college town.

    Why am I happy? If he shares the rent, he’ll save more for the whopping down payment since houses are going for over $500/sq. foot. He recently told me what he has in checking and savings. My jaw dropped. It’s more than me…

  2. shadash

    Susie,

    The best tech housing story I’ve ever heard was about a guy that lived on a boat in the SF Marina. His boat cost 50k and the slip was $500 a month. He walked downtown every day to hang out with friends and caught the bart to work in SJ. He changed boats every 5-6 months and upgraded. All the rest of his 150-200k salary went to his piggy bank.

    Regarding Shiller…

    I find it amazing that people give him the time of day. Nothing he says is earth shattering and he gives himself 3 months lag time to make his market comments. I like how he’s able to talk from both sides of his mouth but never to far one way or another. Just enough to stay on the radar and get quoted + make $$$.

  3. Jim the Realtor

    And none of the interviewers ever question his statements – just take them at face value and keep moving.

  4. jenrent8@yahoo.com

    Shiller, I thought I was the only one who thinks he gets way too much attention LOL.

    Tech savers, I like the story of the google employees with fake home addresses who actually live at the facility LOL. (free food, free sleeping area’s, free laundry), what a life LOL.

Jim Klinge

Klinge Realty Group
Broker-Associate, Compass
Jim Klinge

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