Research Across 145 Years Shows Why Housing Should Remain an Integral Part of Your Portfolio

Investor Resources

 

Historical data show that when rental income is included, housing has achieved long-term returns competitive with equities, but with lower volatility. Because real estate performance depends heavily on execution, professionally managed vehicles may offer sophisticated investors a more practical way to access the asset class.

 

Some stock investors have begun to assume that housing lags behind public equities.

If you compare the recent growth of the S&P 500 against that of the S&P Cotality Case-Shiller Home Price Index from 2016 through 2026 on the Federal Reserve Bank of St. Louis’s website, it may feel as though real estate has no way of matching the meteoric rise of the stock market.

See the graph below.

However, historical research shows that housing remains an important component of any investor’s long-term portfolio because of its potential to do just as well as the stock market over time.

Long-term portfolio construction is not simply a question of which asset class looked best over the last 10 years. Nor is it wise to extrapolate one decade of performance over the next 20 years.

This is because most of us must stay invested in the market for more than just a decade or even two. The better question is whether an asset class contributes meaningfully to long-term return, income, volatility control, and diversification.

This article reviews the actual research on investment returns between equities and real estate across time to explore this topic.

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Acquisition #48 – 17/29 Pack: 13418 Kilbourne: Projecting 17% Cash-on-Cash in Year One

SFR acquisitions

Investment Summary

This property is part of the 29 Pack Portfolio purchased in the summer of 2025. The standard purchase price assigned is $52,000, with $5,000 allocated toward capital improvements, bringing the total basis for the asset to $53,510.

At acquisition, the property was rented for $625/month. It now generates $1,525 in monthly rent, representing a strong income profile relative to its entry basis. Our property managers are typically able to underwrite and reach an agreement with the tenant during the pre-purchase walk-through, an ability most landlords lack.

The asset contributes meaningful performance to the portfolio, with a projected 17% cash-on-cash return in year one following the rent adjustment (not adjusted for items such as tax hikes).

Property Overview

  • Purchase Price: $52,000 (standardized from the portfolio purchase)
  • Capital Expenditure Planned:$5,000
  • Total Basis: $53,510
  • Original Rent:$625/month
  • Current Rent:$1,525/month
  • Square Footage: 938~ sq ft
  • Bedrooms / Bathrooms: 2 bed / 1 bath
  • Construction:Brick

Neighborhood Analysis

  • Located in Detroit’s Eden Gardens area, right across from East English Village and Grosse Pointe
  • Situated along the I-95 corridor with easy freeway access
  • 5-minute drive to Tim Hortons along East Warren Avenue
  • 6-minute drive to Grace Supermarket
  • Directly across from the family-friendly Chandler Park

Comparable Sales

Our realtors’ comparable sales list shows:

  1. 14274 KILBOURNE Street, Detroit, MI 48213-1566 — sold for $49,500

Property values in this area remain in flux as of 2025–2026, and the team has assigned a conservative valuation accordingly; further supported by the fact that the current tenant has lived in the property for 8 years. While the market corrects itself, the fund holds an extremely high cash-flowing asset with solid bones.

Disclaimer
This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities in Mutual Trust Management Advisors, LP. Any offering of securities is made only to verified accredited investors pursuant to Rule 506(c) of Regulation D under the Securities Act of 1933. The financial projections, including estimated cash-on-cash returns and property valuations, are forward-looking statements based on current assumptions. These figures are not guarantees of future performance. Real estate investments involve inherent risks, including the potential loss of principal. Past performance is not indicative of future results.