93% of Americans Believe a Home Is a Better Investment Than Stocks
A recent Survey of Consumer Finances study released by the Federal Reserve reveals the net worth of homeowners is forty times greater than that of renters. If you’re wondering if homeownership is a good investment, the study clearly answers that question, and the answer is yes.
Do Americans believe a home is a better investment than stocks?
In a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York notes that 93.3% of Americans believe buying a home is definitely or probably a better investment than buying stocks.
Here’s how the results break down:
The survey also shows a wide range of reasons why Americans feel that way (respondents were able to pick more than one answer):
Bottom Line
The data show how strongly Americans believe in homeownership as an investment. That belief is warranted. The Liberty Street Economics blog put it best by saying:
“Housing represents the largest asset owned by most households and is a major means of wealth accumulation, particularly for the middle class.”
The vast majority of homeowners say they’re emotionally attached to their home & it’s kept them safe during the pandemic.
Some households are focusing their efforts on buying a vacation home rather than staying in a hotel
The data show how strongly Americans believe in homeownership as an investment. That belief is warranted.
While you might expect more time at home to lead to a need for more space, it’s interesting that a significant portion of homeowners actually want less.
There has been a lot of discussion as to what will happen once the 2.3 million households currently in forbearance no longer have the protection of the program.
The idea of homeownership as a direct way to build your net worth has met the test of time
An improving economy with a falling unemployment rate will benefit households across the country, as well as the overall housing market.
In a sellers’ market, some homeowners might be tempted to try to sell their house on their own instead of working with a trusted real estate professional.