Some of the big differences between the housing market and the stock market are:- Leverage. The housing market uses substantial leverage, the stock market does not. The credit required to support that leverage may not always be readily available.
- Liquidity. In general, the stock market remains liquid. Illiquidity (aka “crash”) is a very rare event. In housing, illiquidity is routine. It may take a huge price reduction to move a house quickly when inventories are high.
- Carry. Stocks generally have a low carry, other than cost of money there’s nothing. Houses are high maintenance, apart from the cost of money they must be insured and kept in good repair and may be heavily taxed. Some stocks pay dividends, some houses have rental income which in both cases mitigates the carry. Single family housing at current prices general still have a carry cost even with rentals, as do stocks because most dividends are low.
- Transaction costs. With 6% commissions to the MLS cartel, to say nothing of title insurance, appraisal fees, transfer taxes, etc., housing has huge transaction costs. This discourages trading, of course, as does the often-poor liquidity.
- Security of title. Housing may be seized at any time by the local authority, on a whim. While compensation is required to be paid, it is generally inadequate. Stocks can only be seized through legal process.

And folks still want to speculate in the housing market?