'Big Short' star Michael Burry says buying a home is rarely a good investment — but may still be worth it

Michael Burry of "The Big Short" fame says housing isn't a great investment. Astrid Stawiarz/Getty Images Michael Burry says residential real estate is typically a lackluster investment. The "Big Short" investor said housing offers bond-like returns but has "lagged the S&P 500 badly." Burry said the key appeal of owning a home is its contribution to your quality of life. Michael Burry , who knows a thing or two about the housing market, says that buying a home is usually a mediocre investment. "I calculated the long-term after tax return on residential real estate over a 50 year adult life is about 4.5% after tax including expected maintenance costs," he said in a Substack post on Monday. He said that's a similar return to what a "good bond" offers, but housing has "lagged the S&P 500 badly" over the past 25 years, despite experiencing "remarkable" appreciation during that timeframe.