Stocks Are a Better Investment Than Housing: Shiller

Tuesday, 30 Apr 2013 | 11:24 AM ET
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Noted economist Robert Shiller, well-known for his analysis of the housing market, told CNBC on Tuesday that he thinks stocks are a better investment than real estate.

Asked to compared the two, he said in a "Squawk Box" interview, "If it's just an investment [not for living], I would say the stock market."

"Stocks for the long run—the two century-long history—show a lot of amazingly good performance for stocks," he added. "Maybe it won't be that good in the future, but I bet it's better than housing."

(Read More: What Slowdown? Home Prices Up Most Since 2006)

(Read More: Fast Rise In US Home Prices, Some Murmur Bubble)

Rentals: The New American Dream?
Robert Shiller, Co-founder of the Case-Shiller Index, discusses the outlook on housing and whether Americans are abandoning the dream of home ownership in favor of renting.

In the decade—December 2002 to December 2012—home prices, as measured by the S&P/Case-Shiller 10-City Composite Index, yielded an annualized return of about 1 percent, while the S&P 500 Index gained just over 7 percent.

(Interactive Map: Tracking the US Real Estate Recovery)

Of course that comparison takes into account the historic housing collapse that began around 2008. The stock market also had a dramatic decline during the financial crisis, but has since recovered.

The S&P 500 Index finished at a record high close on Monday, while the Dow Jones Industrial Average ended the session 46 points away from its all-time high close.

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