Renting also has hedges embedded, and every hedge can be a risk position.
In particular the interest rate options in foxed mortgages are pretty expensive and it only hedges the cost of a particular house not housing in general.
Housing cost is correlated with local incomes so in some ways it's doubling down. In particular recessions are deflationary in the immediate aftermath.
In particular the interest rate options in foxed mortgages are pretty expensive and it only hedges the cost of a particular house not housing in general.
Housing cost is correlated with local incomes so in some ways it's doubling down. In particular recessions are deflationary in the immediate aftermath.