A recent Bankrate national survey found that the majority of Americans would prefer to invest in real estate, rather than put their money in the stock market.
When Bankrate asked consumers where they would prefer to invest money they wouldn’t need in the next decade, real estate topped the list, followed by cash investments and the stock market. The rise in popularity in real estate investing is likely tied to the financial crisis of 2008-2009, with younger investors still weary of putting their money in the stock market. Brad Barber, University of California finance professor, explains, “If you come of age in a period when you view the market as being tumultuous, that probably makes you less likely to invest in the stock market.”
Americans are enjoying the 26th consecutive month of improving financial well-being conditions, with more and more people looking to invest in their futures. The most popular option for long-term investing was real estate, according to the Bankrate survey. Sterling White, co-founder of a real estate investment firm, says it makes sense. “Houses are tangible. You can physically see and feel the product. SO you know where your money is going: It’s going into that house. With stocks, you have no clue where your money is going.”