Excess Returns · Tuesday, September 8, 2026
Jared Dillian points out that many individuals overlook their primary residence as a significant component of their investment portfolio. He highlights that for a typical middle-class person, their home equity can represent a substantial portion of their total assets, often exceeding allocations in stocks or other investments.
“My favorite part about this with the financial planning hat on too, is most people have real estate, they don't ever think about it as part of their balance sheet or part of their investment portfolio.”
“And you kind of address that too. And it is. Yeah. And the other thing is, um, most people are over-invested in real estate. Relative to the other asset classes.”
“So if you're a middle-class person and you have a $400,000 house, and let's say you have 40% equity in the house, so you have $160,000 that is invested in real estate.”