80% of Americans Believe Owning Real Estate Is Important for Wealth Building

Eighty percent of Americans believe owning real estate is an important part of building long-term wealth, according to a survey by IPX 1031. Additionally, 41% believe that real estate will provide better returns over the next decade, compared to the stock market (58%). 

However, only 17% reported that they’ve used or considered using real estate investment trusts, and 36% said they didn’t know what 1031 exchanges, Delaware statutory trusts or REITs were. 

Still, investing remains on the minds of many Americans, and 92% said they think investing is the key to building wealth. The average amount Americans have in investments came out to $246,000, with each generation having an average of: 

• Gen Z: $32,000 
• Millennials: $173,000 
• Gen X: $311,000 
• Baby boomers: $472,000 

The survey found that the most common investments were in: 

1. Stocks 
2. Retirement accounts 
3. Mutual funds/exchange-traded funds
4. Cryptocurrency 
5. Bonds 

But amid financial uncertainty, many have changed the way they invest and save their money. Thirty-nine percent said they’ve made changes to their investments in the last year due to the state of the economy. The top changes made were: 

1. Shifted to safer investments (42%) 
2. Increased how much they save (42%) 
3. Added new income streams (36%) 

Moreover, 18% said they’ve sold stocks/mutual funds in the last year to cover everyday expenses, and 15% said they’ve withdrawn from their emergency savings to do the same.  

Although the average respondent said they made their first investment at 27 years old, 80% said they wished they had started investing earlier in life.