The Case for Buy and Hold

[Account Closed]

I believe that the best way to accumulate wealth in the United States is to hold real estate investments for long periods of time.

80% of the landmass of the United States is held either by the government or is in agricultural use. That leaves only one fifth of the area to support all commercial and residential uses, including the infrastructure that is the backbone of commerce. The population density of the U.S. in 2010 was approximately 90% per square mile, but effectively we are supporting 400 persons per square mile for most of our improved land uses (adjusting for farming and gov't).

Between 2005 and 2020, census projections show and increase of more than 40 million Americans, which will bring effective population density above 450 persons per square mile. The 2010 census indicated that 79% of the U.S. population is concentrated in urban areas, a proportion that continues to increase over time. As intensity of land use increases, The upward pressure on real estate values is a persistent feature of the national economy.