A Home Is a Better Investment Than Stocks
If you’re wondering if homeownership is a good investment, the study clearly answers that question, and the answer is yes. A recent Survey of Consumer Finances study released by the Federal Reserve reveals the net worth of homeowners is forty times greater than that of renters.
Do Americans believe a home is a better investment than stocks? In a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York notes that 93.3% of Americans believe buying a home is definitely or probably a better investment than buying stocks. Here’s how the results break down:
The survey also shows a wide range of reasons why Americans feel that way (respondents were able to pick more than one answer):
Mullin Message The data show how strongly Americans believe in homeownership as an investment. That belief is warranted. The Liberty Street Economics blog put it best by saying:
“Housing represents the largest asset owned by most households and is a major means of wealth accumulation, particularly for the middle class.”