Real Estate: America’s Favorite Investment
We might be tooting our own horn here, but we have said this time and time again. Real estate is the best asset that you can own. This is true on paper, and now, based on the opinions of the American people. Confidence in the real estate market hasn’t been this high in decades, and the dream of homeownership is being achieved for millions. That being said, why is real estate the most popular investment? Check out the non-financial benefits of owning a home to see why Americans have decided real estate is the best investment. According to the latest Gallup poll, real estate has been rated the number 1 investment in America by Americans. This is nothing new, as real estate has topped this poll for the past eight years, even as the popularity of stocks has soared. Here is why real estate is the best investment.
Why Real Estate Rates Number 1
When it comes to investing, many people often times overlook the investment in real estate. In fact, most people believe real estate investing is done through REITs and rental portfolios. However, investing in real estate is as simple as owning your own home. Owning a home not only has tremendous mental and emotional benefits, but it is also one of the best assets for financial benefits. Over the course of the pandemic, many Americans were able to enjoy increased home equity and wealth.
Home prices have soared as demand has outweighed supply throughout the years. With home prices increasing 17% on average in 2021, many homeowners were able to add to their net worth. The best part about this is; this was a truly passive was to gain wealth. That is what investments are all about. Making money while you sleep is everyone’s overall goal (if you have goals pertaining to wealth), so owning a home helped people achieve this.
Gallup Poll Results
Many people have heard of Gallup Polls, and they are more relevant during election cycles. Most of the polls that people participate in from Gallup deal with politics and approval ratings. However, they also have a hand on the market for finances, sports, colleges, and more. According to the Gallup Poll determining the best long-term investment, the people have sided with real estate. This is not an alarming surprise though, as real estate remains a secure and safe investment in the eyes of the people. Real estate was able to beat out stocks/bonds, precious metals (gold, silver), savings accounts, and bonds. This is generally the rule of thumb as stocks are volatile, gold limits growth potential, cash is trash, and bonds haven’t been relevant to Americans in decades.
Real Estate Is The #1 Investment For A Reason
With results from this poll, they are beginning to show that real estate is running away from the competition. In fact, real estate is nearly 12% more popular in the results from these polls than stocks, which come in second place. Even after manipulation and fraud, many Americans have stuck with real estate for long-term investments. This is because even when there is foul play, real estate is real property. Real property holds value, especially when it comes to something that is becoming more scarce than ever, housing. In December, there was record low inventory of homes listed for sale on the market. While you may not think of real estate as a product that is going to be scarce, it is important to remember that there is only so much development-worthy land.