In a new poll released by Gallup, the majority of Americans believe real estate is the best long-term investment, beating out both stocks and gold for the top spot.
Not only did real estate once again come out on top of the list, but it also cushioned its lead over the next closest option (in this instance, stocks) for the second year in a row. Of the respondents to the poll, 35 percent said they thought real estate was the best long-term investment, 22 percent said stocks, 17 percent said gold, 15 percent said accounts/CDs, and 7 percent said bonds.
Over the past five years, real estate and gold have switched positions. In August 2011, only 19 percent of people felt real estate was the best long-term investment. During that same year gold was the most popular choice among Americans at 34 percent. This is due in large part to the housing market being on the upswing from the 2007-2009 crash while gold prices trended in the opposite direction. As the average sale price of new home sin the U.S. increased from $259,300 in August 2011 to $348,900 in February 2016, gold dropped from $1910 to $1,254 per ounce.
Now, regardless of age, income, or gender, real estate was the top choice. In fact, the only group that felt stocks and mutual funds were the safer investment had college degrees. 35 percent of those polled who had a college degree said real estate was the best long-term investment and 37 percent said stocks and mutual funds. Even stock investors chose real estate to stocks at 34 percent to 33 percent. Renters are almost as likely to list real estate as the best choice at 34 percent (homeowners) to 32 percent (renters). Universally, bonds were the least picked option.