Real Estate Is Still Considered the Best Long-Term Investment

<article class="post-709604 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-709604"><span class="entry-date">June 6, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Real Estate Is Still Considered the Best Long-Term Investment</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Real+Estate+Is+Still+Considered+the+Best+Long-Term+Investment&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Freal-estate-is-still-considered-the-best-long-term-investment%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Real Estate Is Still Considered the Best Long-Term Investment Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230606-real-estate-is-still-considered-the-best-long-term-investment.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>With all the headlines circulating about <a href="https://www.simplifyingthemarket.com/2023/05/16/the-worst-home-price-declines-are-behind-us/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">home prices</a> and rising <a href="https://www.simplifyingthemarket.com/2023/05/19/the-impact-of-changing-mortgage-rates-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">mortgage rates</a>, you may wonder if it still makes sense to invest in homeownership right now. A <a href="https://news.gallup.com/poll/505592/real-estate-lead-best-investment-shrinks-gold-rises.aspx" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">recent poll</a> from <em>Gallup</em> shows the answer is yes. In fact, real estate was voted the best long-term investment for the 11^th consecutive year, consistently beating other investment types like gold, stocks, and bonds (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/content/images/20230605/20230606-americas-opinion-of-best-long-term-investment-in-2023.png" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230605/20230606-americas-opinion-of-best-long-term-investment-in-2023.png"/></a></p>
<p>If you’re thinking about <a href="https://www.simplifyingthemarket.com/2023/05/24/owning-a-home-helps-protect-against-inflation/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">purchasing a home</a>, let this poll reassure you. Even with everything happening today, Americans recognize owning a home is a powerful financial decision.</p>
<h4><strong>Why Do Americans Still Feel So Positive About the Value of Investing in a Home?</strong></h4>
<p>Purchasing real estate has typically been a solid long-term strategy for building wealth in America. As Lawrence Yun, Chief Economist at the <em>National Association of Realtors</em> (NAR), <a href="https://www.nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">notes</a>:</p>
<blockquote><p><em>“. . . </em><strong><em>homeownership is a catalyst for building wealth for people from all walks of life.</em></strong><em> A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”</em></p></blockquote>
<p>That’s because owning a home grows your <a href="https://www.simplifyingthemarket.com/2023/05/15/homeowners-have-incredible-equity-to-leverage-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">net worth</a> over time as your home appreciates in value and as you pay down your mortgage. And, since building that wealth takes time, it may make sense to start as soon as you can. If you wait to buy and keep <a href="https://www.simplifyingthemarket.com/2023/05/01/why-buying-a-home-makes-more-sense-than-renting-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" style="color: rgb(5, 99, 193);" target="_blank">renting</a>, you’ll miss out on those monthly housing payments going toward your home equity.</p>
<h3>Bottom Line</h3>
<p>Buying a home is a powerful decision. So, it’s no wonder so many people view real estate as the best long-term investment. If you’re ready to start on your own journey toward homeownership, connect with a local real estate advisor today.</p>
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