Looking at the ratio of total stock market caps over total residential house value in the US, I think it may be a good time to invest in REITs. The current number of the ratio is 1.25, only slightly lower than 1.48 we saw in 2000 during dotcom bubble.
The Ratio Over Time (1900–2025)
In 1900, total stock market cap is $10 billion and total residential housing value is $22 billion. So the ratio is 0.45.
In 1929, The "Roaring 20s" stock bubble nearly equalized the two asset classes. The ratio is 0.9.
In 1933, Great Depression crushed stocks; housing values fell less severely. The ratio is 0.25.
In 1945, it’s the post-WWII baseline scenario. The ratio is 0.48.
In 1955, it’s the post-war boom in both assets. The ratio is 0.74.
In 1980 High inflation era; real estate held value better than stocks. \[3\], the ratio is 90.48.
In 2000, Dot-Com Bubble: Stocks massively detached from housing values. The ratio is 1.48.
In 2006, Housing Bubble: Housing values surged, narrowing the gap. The ratio is 0.79.
In 2009 Great Financial Crisis bottom. The ratio is 0.59.
In 2024, AI/Tech Boom: Stocks pulling away again. The ratio is 1.25.