Owning a home—whether in Greenwich, in Connecticut, or in any other state—is Americans’ most trusted way to build wealth. That’s the takeaway from Gallup’s poll, conducted this spring. It’s easy to agree with—but surprising for a number of reasons.
First off, the continuing bull stock market has now rewarded investors for a very long time. LastThursday ended with the S&P 500 marking yet another all-time record. When “owning a home” has to compete with an investment alternative that’s been on a rampage for years, wouldn’t you expect the alternative investment to be the favored choice?
Depending on what area of the country you live in, residential real estate prices are rising, slowing or steady. If you live in an area where the growth trend is tapering, or the memory of the housing crunch from the last decade still weighs on your mind, it’s likely you are thinking hard before increasing your commitment to real estate. And while you might be carefully considering your next move, “owning a home” is the clear winner in the Gallup poll of respondents reflecting on their best long-term investment choice. Despite the record highs notched by Wall Street in 2019, Gallup found that “more Americans continue to believe real estate is a superior long-term investment to stocks”—by 35% to 27%. And savings accounts or CDs aren’t even close (at 15%).
Gallup has been polling the “best investment” question for 17 years, but this year’s April 1st through 9th edition found most respondents expecting U.S. home prices to continue to rise. Contributing factors are the value investors place “above and beyond its likely returns”, having a place that they love to live in.
Note: The home featured in this blog is currently available for purchase. $1,495,000 5 bedroom, three floors of perfection, and lovely gardens and yard. Located in Greenwich, CT.