Here's a quick question. What investment do Americans trust more than stocks, gold, savings accounts, and bonds? The answer has stayed the same for the past 14 years.
Real estate. And this year, people are more confident about that answer than ever. New data shows they’re not just saying homeownership is a smart investment, they’re feeling more optimistic about it than they have in years. Here’s why.
Real Estate Takes the Top Spot – Again
Every year, Gallup asks Americans what they believe is the best long term investment. And for the 14th year in a row, the answer has been the same. Real estate continues to take the top spot (see graph below):
That’s no coincidence. For 14 years in a row, real estate has consistently ranked ahead of stocks, gold, and every other investment option.
Think about everything that's happened over the past 14 years. We've seen rising interest rates, market ups and downs, election cycles, and plenty of uncertainty. Through it all, Americans have continued to choose real estate. That says a lot about how people view homeownership, and for good reason. It has long been one of the most reliable ways to build wealth in this country.
As Michelle Egan, Head of Credit Solutions for Impact Finance at JPMorgan Chase, explains:
““Owning a home has long been considered one of the most reliable ways to build wealth. Beyond providing shelter, a home is a valuable asset that can appreciate over time, build equity, and serve as a financial resource for generations.”
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You may have seen headlines or social media posts claiming home prices are falling and wondered if that changes things. The reality is, it doesn’t. On a national level, home prices are still going up, just at a more normal pace than they were a few years ago.
While a few local markets are seeing small price declines, those changes are minor compared to how much home values have increased over the past five years. In general, home prices tend to rise over time. If you plan to stay in your home for several years, you'll likely have the opportunity to build equity along the way.
More People Say Buying Beats Renting
Homeownership has long been viewed as a smart goal, but something interesting is happening. It’s starting to gain even more momentum and popularity again.
According to Bank of America’s latest Homebuyer Insights Report, 53% of Americans now believe buying a home is a better choice than renting or living with family. That’s the first time since 2023 that buying has come out on top (see graph below):
The same report also shows that confidence in homeownership is continuing to grow. Here are a couple of standout findings:
90% of people believe a home is a valuable investment, up from 79% last year.
94% say owning a home provides stability, compared to 83% the year before.
Those are some pretty significant increases in just one year. So, what's behind this growing confidence in homeownership?
Homeownership has long been viewed as a smart goal, but something interesting is happening. It’s starting to gain even more momentum and popularity again.
It’s About More Than Money
Affordability remains a challenge, and some markets are still tough to enter. But that hasn’t changed how people feel about owning a home. That’s because buying a home isn’t just a financial decision. It’s also a lifestyle choice.
A home offers benefits that go far beyond what you’ll get from stocks or other investments. As Redfin Chief Economist Sheharyar Bokhari explains:
““For many homeowners, a home is more than a place to sleep and store belongings—it’s a reflection of who they are. Homeownership can help people put down roots, build relationships and create a space that feels uniquely their own.”
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You won’t get that from a brokerage account. A home can help you build wealth while also giving you a place to create memories, put down roots, and build your life. That’s what makes it so valuable.
Bottom Line
For the past 14 years, Americans have ranked real estate as the best long term investment, and confidence in homeownership continues to grow. If you’ve been wondering whether buying a home is the right move, let’s connect and talk about what your first step could look like.
