Why Real Estate Continues to Be One of the Best Long-Term Investments
Real Estate Shelly O'Neil July 27, 2026
Real Estate Shelly O'Neil July 27, 2026
Every year, Gallup asks Americans one simple question:
And once again in 2026, real estate came out on top.
In fact, this marks the 14th consecutive year that Americans have ranked real estate above stocks, gold, cryptocurrency, bonds, and savings accounts as the best place to build longterm wealth.
As a San Diego Realtor, I hear this question all the time. With headlines about the stock market, crypto, interest rates, and inflation, it's understandable that people wonder if real estate is still the right investment.
While everyone's financial situation is different, these results show that Americans continue to have confidence in homeownership over the long run.
Here's how people answered Gallup's 2026 survey:
Real estate received nearly twice as many votes as the next closest investment.
Stocks gained a little ground compared to last year, while gold cooled off after its recent surge. And despite all the attention cryptocurrency receives online, only 2% of Americans believe it's the best longterm investment.
Fourteen years is a remarkable run.
Since 2013, real estate has held the top spot every single year, through changing administrations, a global pandemic, recordlow interest rates, rapidly rising mortgage rates, and everything in between.
The only times it lost the top position were during extraordinary economic events:
By 2013, real estate had reclaimed the top spot, and it hasn't looked back.
One of the biggest reasons is simple: a home isn't just an investment.
It's a place to live, raise a family, build memories, and, over time, build equity.
Unlike many investments that can fluctuate dramatically from one day to the next, real estate has historically appreciated over longer periods of time while providing homeowners with a tangible asset they can actually use.
Yes, the stock market has historically produced higher longterm returns. Between 1990 and 2024, the S&P 500 significantly outperformed national home appreciation.
However, stocks also tend to experience much greater volatility.
Real estate has historically delivered steadier appreciation while allowing homeowners to build wealth through both appreciation and paying down their mortgage over time.
National home prices have continued to grow over multiple decades:
Even with periods of economic uncertainty, home values have continued to appreciate over the long run.
Here in San Diego, we've experienced many of those same national trends, although our market has often outperformed the national average because of limited inventory, strong demand, and the lifestyle that continues to attract buyers from around the country.
Of course, every market is different, and every neighborhood behaves differently. That's why it's so important to look at local data instead of relying solely on national headlines.
Buying a home isn't the right decision for everyone, especially if you plan to move again in the next few years.
But if you're thinking long term, history continues to show why so many Americans view real estate as one of the strongest ways to build wealth over time.
Whether you're buying your first home, moving up, downsizing, or investing, the best decision is always the one that fits your financial goals, timeline, and comfort level.
If you're curious about what's happening in the local San Diego market or wondering whether now is the right time for your next move, I'd be happy to help you understand your options.
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