The American dream of homeownership is still coveted for a couple of good reasons: skyrocketing rents and double-digit appreciation. According to a new Gallup poll released today, Americans still view real estate as the best investment vehicle for the second straight year in a row; crushing stocks, CDs and bonds, savings accounts and gold as the best long-term investment.
Leading the pack for potential US investors, 31% of Americans believe that real estate currently offers the best potential return on their investment, with mutual funds and stocks trailing by 6%. Rejecting the fear and volatility that gold investment represents, the precious metal plummeted to third place on this year’s list of potentially good investments. Representing a significant change from the financial quagmire of 2011 and 2012, when gold was still viewed as the investor’s best friend.
Gold Dives, Real Estate Thrives
After the Real estate debacle of 2007 crushed home values and consumer confidence, kicking off the financial crisis of 2008, many fled to the relative safety of Gold. Eight years later we see a return of conviction to the US real estate market, buoyed by low interest rates and an international feeding frenzy on American real estate.
As real estate values continue to improve from cost-to-cost, Americans are slowly recuperating from the damage done during the Great Recession. Regaining their once unshakable faith in the national real estate market and viewing homeownership as the hands-down winner for long-term financial security.