Owning a home works out financially better than renting which is what you should be comparing it to. You can't compare it to a financial investment because its unrealistic to have $0 housing budget and put it all in the S&P 500 or anything else like that. I think you're getting hung up on the "owning a home is an investment" catch phrase and taking that literally.
Your example is based on averages, which in the real world don't exist. In a growing area, single family detached homes (i.e. not townhomes or anything with shared walls) are going to out-appreciate others types of homes. And location matters more than anything. Good schools, low crime, close to amenities, shopping, etc. and those houses will go up faster than townhomes or condos in a higher crime, worse school area. You can also help the appreciation on a home by doing improvements to it and the property. Convert a 3rd floor attic to live-able space by adding a bedroom and bath and you could see a house bump up into the next range of comparables for that neighborhood/area.
Owning a home works out financially better than renting which is what you should be comparing it to. You can't compare it to a financial investment because its unrealistic to have $0 housing budget and put it all in the S&P 500 or anything else like that. I think you're getting hung up on the "owning a home is an investment" catch phrase and taking that literally.
Your example is based on averages, which in the real world don't exist. In a growing area, single family detached homes (i.e. not townhomes or anything with shared walls) are going to out-appreciate others types of homes. And location matters more than anything. Good schools, low crime, close to amenities, shopping, etc. and those houses will go up faster than townhomes or condos in a higher crime, worse school area. You can also help the appreciation on a home by doing improvements to it and the property. Convert a 3rd floor attic to live-able space by adding a bedroom and bath and you could see a house bump up into the next range of comparables for that neighborhood/area.