You'd rather have both though right? Obviously it depends on the market and california is a pretty bad example as an outlier where renting may make more sense but in most places in the world atm buying is the cheaper and safer (as in less chance of eviction at short notice) option. On the flip side renters only pay for increase in property values and never gain. Real Estate is a major wealth generator for people who get on the ladder. Finally you can't live in your 300k diversified portfolio if the market crashes.
I would only prefer a house over stocks/bonds if the price-to-rent ratio was very low and I could purchase a house I liked for a small fraction of my net worth.
> Real Estate is a major wealth generator for people who get on the ladder.
ultimately this comes down to luck and how much of your income you spend on housing vs put into investments. there are certain locales where home prices are skyrocketing, but over the long term, average home appreciation is basically flat (but with lots of variance). [0] actively investing in rental properties is a different story, of course, but involves a lot of work, too.
> Finally you can't live in your 300k diversified portfolio if the market crashes.
sure, but rent is only about half of my monthly expenses currently. by the same token, you can't eat your house or fill up your tank with it. if you're worried about a crash and/or losing your source of income, you can always rebalance into bonds.
