Americans believe that real estate is the best long-term investment option for the second year in a row, according to a new survey by Gallup.
Gallup polled over 1,000 adults and found that 31 percent of respondents considered real estate to be the best long-term investment. 25 percent of those surveyed said that stocks and mutual funds are the best long-term investment, followed by gold at 19 percent. This is a big change from 2011-2012 when gold was the most appealing investment.
“Real estate took a pounding in home values and consumer confidence after the subprime mortgage crisis that started in 2007 spurred the financial crisis of 2008, deepening the 2007-2009 recession,” Gallup reports. “Gold gained appeal during this time, likely due to its tangible quality, but this has proved to be temporary.”
While confidence in real estate declined during the global banking crisis and recession, real estate is now ranked as the top investment choice or tied for the top choice with all major gender, age and income groups. This sentiment echoes a recent generational trends study from the National Association of Realtor® that reported that 79 percent of all buyers surveyed considered buying a home a “good financial investment.”
Besides real estate, stocks/mutual funds, and gold, survey respondents also listed savings accounts/CDs, and bonds as solid long-term investment options.
Source: “Americans Again Say Real Estate Is Best Long-Term Investment,” Gallup (April 23, 2015)