<prompt> Human: Whats the point? Seems like a lot of risk, but very little potential for upside. Am I missing something?  <response>: The Case-Shiller index is a number used to estimate the approximate value of a home relative to the economy at large. This is a graph of the historical value of the index through 2011. Heres a shorter one through February 2013. I dont know why Im having trouble finding one through current... weirdYour point is correct that, in general home prices track inflation. To address your question in a vacuum, assuming that home prices simply track inflation, many look at it as an investment because once a home is owned, it is more than just an appreciating hopefully asset... it is shelter. You have eliminated a major cash outflow and it brings general peace of mind. It is an investment that pays dividends beyond just dollars.Now, when the bubble started happening, many people saw homes as risk-free investments with huge returns. We could wax poetically about what a stabilized housing market will actually look like and the externalities that affect it but the major takeaway is that there are bubbles and they do burst.If you want a house because you want to live there and can afford it, it can bring a lot of good. If you want a house because its going to go up in value by 40 in 2 years, who cares if you can afford it? Youre gonna have a bad time. 