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Real Estate vs. Stocks — Which do Americans Prefer?

A new study from the Federal Reserve Bank of New York took a look at consumer preferences and gauged how sentiments have shifted during the COVID-19 pandemic. Participants were surveyed on which they believed was the better investment — a home or stocks.

The study concluded that over 90% of respondents preferred owning their home over investing in the stock market. Additionally, over 50% of respondents preferred the idea of being landlords and owning rental properties over purchasing stocks.


The reasons?

  • Home costs are less volatile than the stock market.

  • Homes provided comfort and stability.

  • The fast pace in which homes are appreciating in value nationwide.

Interestingly, the study also found that women were more likely to prefer homes over men, and non-college graduates also preferred homeownership more than those with college diplomas.