This year, those who favor buying property were the clear plurality with 36% of the vote. Stocks and mutual funds came in at 22%, gold at 18% and savings accounts and certificates of deposit at 13%. Only 4% of Americans would choose bonds, and 3% opted for cryptocurrency.In some ways, real estate's popularity shouldn't be surprising.
It's worth noting that Gallup's poll uses some amorphous terms. For one thing, a"long-term investment" means different things to different people. So does"real estate." You can invest in real estate via real estate investment trusts, which trade like stocks, or ETFs that hold them. High net worth investors can enter into property deals that are structured more like private equity investments.
From the beginning of 1990 through April 2024, the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures residential real estate values, has risen by 308%. Home prices, in other words, have quadrupled over the last three decades."You can't negate the compounding power of stocks over the long term for any investor, especially young investors," says Andrew Briggs, a wealth manager and director of portfolio management at Plaza Advisory Group.
Yet, in Gallup's survey, real estate is an even bigger winner relative to stocks among those who could least afford a home. Among Americans making less than $40,000 per year, 33% choose real estate as their No. 1 long-term investment. Gold comes in second place with 23% and savings accounts and CDs round out the podium with 20%. Just 14% chose stocks and mutual funds.