Good discussion Karen.

However, there are a couple of points I’d push back on.

• First, a minor correction: if you put your mortgage balance on the liability side (which you should), then the full value of your house goes on the asset side, not just your equity. That way your net worth shows exactly your equity (value of house minus mortgage balance).
• Then, a much more important point: it’s true that your house will generally “return” a negative return when you consider the very gradual long-term increase in property values minus the costs you bear for keeping it up, paying the interest on the mortgage, property taxes, insurance, etc. However, this makes a false comparison between owning a home and not owning a home, without bringing in to the equation the fact that almost all of us would need to rent a home if we don’t buy one, in which case we have even greater costs (unless you want to assume the landlord is a fool).

Here’s my data-based argument:

Here’s Why You Shouldn’t Be Renting Your Home (and When You Should Anyway)

And here are some more details on how to consider the true costs of home ownership:

A Landlord’s Surprising Take — Should You Buy or Rent a Home