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Americans See Real Estate as a Better Investment Than Stocks or Gold

By
Real Estate Broker/Owner with The Real Estate Agency (Office License: 265417) 317824

Americans See Real Estate as a Better Investment Than Stocks or Gold

 

Last month, in a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York noted that Americans believe buying a home is definitely or probably a better investment than buying stocks. Last week, a Gallup Poll reaffirmed those findings.

In an article on the current real estate market, Gallup reports:

“Gallup usually finds that Americans regard real estate as the best long-term investment among several options — seeing it as superior to stocks, gold, savings accounts and bonds. This year, 41% choose real estate as the best investment, up from 35% a year ago, with stocks a distant second.”

 

Here’s the breakdown:
Americans See Real Estate as a Better Investment Than Stocks or Gold | Keeping Current Matters
The article goes on to say:

 

“The 41% choosing real estate is the highest selecting any of the five investment options in the 11 years Gallup has asked this question.”

Is real estate really a secure investment right now?

Some question American confidence in real estate as a good long-term investment right now. They fear that the build-up in home values may be mirroring what happened right before the housing crash a little more than a decade ago. However, according to Merrill Lynch, J.P. Morgan, Morgan Stanley, and Goldman Sachs, the current real estate market is strong and sustainable.

As Morgan Stanley explains to their clients in a recent Thoughts on the Market podcast:

“Unlike 15 years ago, the euphoria in today’s home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”

Bottom Line

America’s belief in the long-term investment value of homeownership has been, is, and will always be, very strong.

Source: Keeping Current Matters | The KCM Crew

Comments (3)

Trish Cole
Veterans United Home Loans of Puget Sound NMLS#1907 - Puyallup, WA

Great information, and very relevant.  Thank you!

May 25, 2021 09:28 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I have agree with buying a home vs buying gold or investing in the Stock market.  Better investment for sure.

 

May 25, 2021 09:29 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

Well, through good and bad times one thing is for sure, you cannot live in your stocks.

May 26, 2021 07:47 AM