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Here is America's favorite long-term investment
USA Today • • business
Key Points:
- Gallup's annual poll shows that Americans have consistently chosen real estate as the most popular long-term investment since 2013, despite financial experts favoring stocks for higher returns.
- Historically, preferences shifted during economic downturns: savings accounts were favored during the 2008 Great Recession, and gold topped the poll in 2011 and 2012.
- Experts highlight that stocks have outperformed real estate over the long term, with the S&P 500 averaging about 10.4% annual returns from 1992 to 2024, compared to roughly 5.5% for home prices.
- The preference for real estate is partly due to higher homeownership rates in the U.S. and the perception of real estate as a safer, more understandable investment than stocks.
- While gold and savings accounts can serve as diversification or low-risk options, experts agree that stocks remain the best long-term investment for growth despite their volatility.
