But the only reason you'd want 5-to-1 leverage on a house would be to have a hope of keeping up with stocks. Also, it'd be 4:1, right, if you're doing 20% down?
Home values are believed to be less risky. Accordingly, they appreciate more slowly. To make them a good investment, you take leverage until they approximate the risk/return ratio you desire.
Remember, there are huge buyers like BlackRock out there that make the market efficient. If home prices drop to the extent that investing in a house is better than the stock market, then the investors swoop in and the prices go up until the two asset types are equivalent (including the fact that one generally borrows to buy a house).
Home values are believed to be less risky. Accordingly, they appreciate more slowly. To make them a good investment, you take leverage until they approximate the risk/return ratio you desire.
Remember, there are huge buyers like BlackRock out there that make the market efficient. If home prices drop to the extent that investing in a house is better than the stock market, then the investors swoop in and the prices go up until the two asset types are equivalent (including the fact that one generally borrows to buy a house).