It has been said many times before that housing is highly dependent on local markets. Yet the same could be said about individual stocks performing vastly from the index as well. I have highlighted a few individual stocks and real estate markets for comparison.
Also please note Stocks bottomed in 2009, but home prices in general did not bottom until the start of 2012. We will use the low for housing in 2012 as our comparison point even though stocks already had increased 74% from the lows in March 2009 through December 2011.
Return from Stocks from January 2012 – September 2019
S*P 500 +168% with dividends reinvested
General Electric -53%
Return for Residential Housing in various States and Cities January 2011 – September 2019. Data from Zillow.
Entire US +55%
San Francisco, CA +103%
Gary, IN -19%* Data only goes back to January 2013 through September 2019
Comparing the S*P 500 to the US Real Estate market as a whole we see stocks returned 110% more than houses and this does not include the increase of 74% from 2009 to 2011 that stocks experienced while home prices continued their decline. Please note that real estate rental income was not factored into this analysis. If these homes were rented out cash flow positive this would greatly increase the return of the homes.