I just met with yesterday, that kind of got me thinking about this topic. She and her husband bought a small old 1920s house in a gentrifying "up and coming" innercity neighborhood in Vancouver (BC) in '03 --paid $350K. Sold it just last fall, barely six years later, for $850K after some minor inside updates, new kitchen. Not bloody bad return...

Anyway, not trying to disprove your point about real estate not being an investment. Definitely possible to have your mortgage go underwater...one never knows.

Lots to consider, and many of the things you raise I'd never considered re: wx, how having real estate at home may change the way people plan. Much more complex topic than I had sort of anticipated. Beats talking about anchors though ;-)