💯 ... would like to add: the OG source of monetary premium was preferential tax treatment on mortgage interest. i.e. prices get distorted higher when the government is subsiding mortgages. PS. It's also worth noting that the chart comparing housing to the S&P is disingenuously misleading in this context - as it ignores some obvious ancillary financial benefits of home ownership - most notably: not having to pay rent (and/or otherwise collecting rent).