"Your house is not an asset. It is a hedge."

I don’t completely agree with the analogy that you are naturally “short” housing, it’s probably more accurate to say that you have a natural exposure to housing prices since they are an essential input for your life (although I would have to revisit my college Investment Theory class to say that with real conviction).

This article does rightly point out though that your house does not act as an asset for you, it simply reduces your exposure to housing prices by locking in a fixed price of housing.

I don’t agree that you shouldn’t consider it a part of your total assets (it most certainly is, as are futures contracts purchased as hedges) but you should also consider your yearly need for housing as a definite liability. Better yet, you should create a retirement plan with an investment professional.