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We investigate the role of a real estate market in consumption based asset pricing models. A long-standing issue in this context is the inability of these models to match the equity premium observed in the data. Piazzesi, Schneider, and Tuzel (2007) use a model with housing services that comes closer to matching the premium. We look at the performance of this model from a different perspective. Rather than focusing on the model implied returns, we use historical returns to construct the Hansen-Jagannathan volatility bounds for the inter-temporal rate of substitution (a stochastic discount factor). Our returns include real estate returns in addition to the typically included returns on stocks and a risk-free asset. Then we calculate moments of a stochastic discount factor implied by the model from Piazzesi, Schneider, and Tuzel (2007). These moments are shown to be above the Hansen-Jagannathan volatility bounds.