Americans think it’s better to invest in housing than the stock market — here’s why

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Americans’ attitudes toward where to put their money have shifted over the course of the pandemic.

Which is the better investment, owning a home or owning stocks? If you ask most Americans, chances are they prefer the former.

The study found that over 90% of respondents preferred owning their primary residence rather than investing in the stock market. A majority of survey-takers also favored the idea of being a landlord to purchasing stocks, with more than 50% of the participating households preferring to own a rental property.

Research has shown that residential real-estate has acted as a strong hedge in most bear markets, with the notable exception of the Great Recession. The early days of the pandemic is a prime example: The S&P 500 index SPX, +0.77% lost over 20% in the first quarter, while the Case-Shiller National Home Price Index increased 1.4%. That stock market has, of course, recovered since then.

But people’s attitudes toward the housing market have shifted over the course of the pandemic, the researchers found. “The preference for housing dipped in October 2020 and returned back to the pre-COVID level by February 2021,” the study’s authors noted.

 

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Or you could invest in both...

Lol I can buy a house now because of the stock market 😂

With inflated prices? Not a good idea, wait 2 - 3 years and there will be a flood of new housing construction. The market will flip the other way supply & demand controls prices

My house went up in value by 160k in a year. Seems like a pretty legit investment to me.

There is a builder in GTA area who was selling newly constructed houses starting at 1.2m initially where you are putting a deposit of 10%. After 2 weeks, same house had starting price of 1.4m - increase of 200k where so far you have only paid 25k in deposit. That is why!

Yeah, I don’t know of anyone that is in real estate investment that doesn’t work their faces off and most, as you can read, have lost A LOT. All one has to do is place money, every month, into SP 500 ETFs.

This is awful .

Is there a chart comparing home appreciation and S&P performance since, oh, 1990?

Literally nobody thinks this.

Stock Market that you can Live in.....untapped market. Somebody build it.

because we're tired of coked up wall street frat bros playing vegas casino with our retirement?

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