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Buying A Home Is A Lousy Investment: Fed Economist Karen Pence

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Before the housing bust, Americans tended to think their homes were their best and most important investments - a view promoted by Washington policy makers who made home ownership a top priority. Karen Pence, who runs the Federal Reserve's household and real estate finance research group, argues at the American Economic Association's meetings this week that homes are actually a terrible investment.

Putting aside the fact that home prices have fallen dramatically, she says several factors make homes a lousy investments:

Read the whole story at WSJ

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