More than one-third of Americans think real estate is the best long-term investment

Real estate has yet again been chosen as Americans’ top choice for the best long-term investment, according to a recent Gallup survey.

For the past two years, real estate has topped the list of investments, but this year, it has increased its’ margin over other investments. Thirty-five percent of Americans now chose real estate, up from 19 percent in 2011.

Over the past five years, real estate and gold have traded positions as the top pick, but as gold prices have decreased, and the housing market has recovered, real estate has been steadily increasing the lead. Gold took third this year, with 17 percent of respondents selecting it as the best long-term investment. Twenty-two percent said stocks and mutual funds, 15 percent said savings accounts/CDs and 7 percent said bonds.

The report pointed out that the average sale price of new homes in the country increased nearly $90,000 in the past five years, from $259,300 in August 2011 to $348,900 in February 2016. Meanwhile, gold prices have dropped from $1,910 to $1,254 per ounce in the same time period.

Americans aged 30 to 49 are most likely to think real estate is the best investing choice, as 37 percent chose it. Those younger than 30 are the least likely (26 percent) to think real estate is the best choice.

Homeowners and renters were nearly identical in choosing real estate as the best option, as were men and women.

“With housing prices showing a steadier path upward in recent months, even stock investors are about as likely in the April 2016 poll to choose real estate (37 percent) as stocks (32 percent) as the best long-term investment,” the report stated.