Real Estate Is Voted the Best Long-Term Investment 12 Years in a Row

In a recent Gallup poll, Americans once again ranked real estate as the best long-term investment—marking the 12th consecutive year it has held the top spot, surpassing options like gold, stocks, savings accounts, and even cryptocurrency

Why Does Real Estate Keep Winning?

1. Wealth-Building Through Homeownership
   Owning a home enables individuals to build equity over time—equity that renters never accrue. This dynamic plays a major role in long-term wealth accumulation 

2. Perceived Stability
   Compared to the volatility often seen in stock prices or gold valuations, real estate is viewed as a steadier asset. Many homeowners associate it with security and tangible growth 

3. Leverage and Tax Benefits
   Real estate uniquely allows buyers to leverage a small down payment (often 20%) into a much larger asset and enjoy tax benefits like depreciation and mortgage interest deductions 
   
   

Holding Perspective: Sentiment vs. Returns

It's important to note that public sentiment doesn’t always match actual returns:

• A recent MarketWatch analysis highlights that while real estate is the public favorite, stocks have historically delivered higher long-term gains—about 10% annually versus 4–8% for real estate 

• Real estate’s appeal often peaks when prices are high and wanes during downturns, revealing a behavioral bias in investment choices
  
  

Alternatives in the Real Estate Space: REITs

If you’re interested in real estate’s benefits without the hassle of managing physical properties, Real Estate Investment Trusts (REITs) are worth considering:

• They combine real estate exposure with the liquidity of stocks.

• According to Nareit, REITs have delivered an average annual return of ~9.5% over the past 25 years—outpacing the S&P 500’s ~7.5%

• REITs often pay higher dividends (~4%) and are accessible through ETFs and brokerage accounts.
  
  

Final Takeaways

• Real estate’s 12‑year reign in Gallup’s rankings reflects enduring sentiment: Americans view it as the most dependable long-term investment 

• In reality, stocks alone have generally outperformed housing in returns—but real estate brings stability, equity growth, tax perks, and tangible assets.

• For a balanced approach, consider:

  • Owning property for long-term wealth and diversification.

  • Adding REITs if you prefer liquidity and simplicity.

  • Including stocks and bonds to capture strong growth trends over time.
    
    

💡 Bottom Line

While public sentiment favors real estate for its security and building equity, savvy investors should balance their portfolios with other asset classes like equities and REITs. This multi-pronged strategy can help optimize growth, income, and risk over the long run.

Would you like a deep dive into how each of these asset classes—homes, REITs, stocks—fit into a personalized long-term investment plan? Just let me know!