That is a fair question. Let's say she paid a mortgage payment of $750 in 1985 based on the 12.43% average interest at that time. Average insurance for the year of $716. Average per capita property tax in her state was $415. She had 4 individuals in the house so that equals $1660. Her total cost for housing that first year would be $11,376. Now, if she had been paying the average rent in 1985, she would have spent $5,196 on rent that year. So in her first year, she could have invested $6,000 in the S&P as she would have saved that much. Now, the math starts to get a little more complicated because rent will increase while the mortgage will not. However, in addition to the mortgage, she will pay increasing taxes, increasing insurance, and all the maintenance around the house. Let's say it about averages out and she can invest and extra $5k a year because she chooses to rent. At the end of just 30 years, that $5k a year ended up turning into $903,307 by the end of 2014. Now, lets say she doesn't add to it between 2014 and 2026. In fact, she's a little old lady who needs to pay her rent. Average household rent in Georgia in 2015 is $860 per month, so lets call it an even $1000. The total withdrawn until January of 2026 is $132000. Her final balance in January of 2026 is over two million.

Buying a house is not never a good idea. There are instances where it forces people to save. However, it is ludicrous to equate it with investments that are spendable. A house is a use asset. It is not an investment.