It turns out most people don't think real estate is the best long-term investment

It turns out most people don't think real estate is the best long-term investment
New report also reveals which asset makes people uncomfortable.
FEB 21, 2025

It’s often said that the best long-term investment is real estate, especially your own home, but that’s not the finding of a new survey.

A survey of more than 1000 American consumers for Bankrate has found that while 24% of respondents said that real estate is the best investment for cash that is not needed for a decade or more, that was down from 29% in 2022 when it was last asked and was then the most-cited asset.

The decline means that it falls behind the stock market, which was the choice of 27%, up from 26% in 2022 and significantly higher than the 16% who chose this in 2021.

“Coming on the heels of back-to-back strong years for stocks - the S&P 500 index was up 24% and 23% -- Americans cited the stock market as their top long-term investment,” said Bankrate analyst James Royal. “That outstanding performance contrasts with a poor performance in real estate, where prices have been hammered by high interest rates.”

Gen Z are more likely to favor the stock market, while Gen X lead those who prefer real estate; perhaps reflecting a generation with many who feel homebuying is out of their reach vs. one where may are homeowners.

Higher income households are also more bullish on the stock market with 41% of those with an annual household income of $100K or more compared to just 14% of those making less than $50K.

Among those who are not fans of equities, 34% of those who did not choose this option citing market volatility as a turn off, 21% finding it intimidating, 13% feeling its rigged against individual investors, and 13% who prioritize preserving wealth rather than growing it.

Other assets among the top responses for best long-term investment were:  cash investments such as savings accounts or CDs (21%), gold or other precious metals (9%), bitcoin or other cryptocurrencies (6%), and bonds (6%).

“Cash investments may be safe for the short term, but they don’t perform well over the long term, with inflation gnawing away at its purchasing power,” added Royal. “The strong returns in stocks over the last couple of years show the real cost of holding too much cash as a long-term investment, with investors missing out on tremendous gains for the perceived safety of cash.”

The relatively low rating for cryptocurrencies is also reflected in the 78% who say they are uncomfortable investing in these assets while just 20% were comfortable doing so. Typically, younger generations and men were more positive on cryptos and older generations and women were not.

Latest News

Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool
Advisor moves: LPL, Raymond James, Brighton Jones raid the talent pool

Firms continue their quest to attract and retain the best advisor teams.

Most advisors say AI portfolio construction is worth $500 a month
Most advisors say AI portfolio construction is worth $500 a month

A survey from TacticalMind AI found 69% of advisors say a high-quality AI platform that makes investment recommendations and constructs portfolios is worth $500 monthly, while research-only tools are valued closer to $250.

CAIS embeds Claude AI into advisor workflows for alternatives intelligence
CAIS embeds Claude AI into advisor workflows for alternatives intelligence

The alts tech provider's latest integration lets advisors query fund data and surface portfolio insights without leaving their primary workspace.

FINRA puts structured product supervision under the microscope
FINRA puts structured product supervision under the microscope

The regulator is scrutinizing how some firms oversee concentrated positions in complex "worst-of" notes – and wants answers.

RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm
RIA moves: Beacon Pointe tops $4B in New England with latest female-founded partner firm

Meanwhile, Carson Group fully integrates a decades-old practice in Phoenix, Arizona, and Triad Wealth touts its 5x growth to hit a $2 billion milestone.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline