Should a Home count in asset allocation?

[OldAndInTheWay]

I don't count mine in my asset allocation. I do add it into my net worth. Mainly for fun since my house is paid-off and worth $400k.

Someday, when the kids are grown, I could see us selling this 8br rambling old house with high property taxes for something much smaller and cheaper.

[MonkeyMama]

Scfr sums up my viewpoint. Which may or may not be relevant to OP's situation. I understand the other comments about rebalancing and so on. Which is why I would not overthink it too much if I were to invest in real estate. IT would be considered, but not overthought.

Scfr and I have quibbled on this point in the past, but I think we see fairly eye to eye. The problem in a region where home prices outpace equities (over several decades), is that limiting home value to a certain percentage of net worth is kind of a useless exercise. It's impossible. BUT, with home values that high, I've always felt the last thing we need is MORE real estate exposure. For that, we see eye to eye. (& I do agree with everything else she said).