Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
Americans’ 6 Favorite Long-Term Investments, Ranked
By Julia Glum MONEY RESEARCH COLLECTIVE
While the popularity of real estate has stayed steady since 2014, other assets are experiencing ups and downs.
***Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.***
Americans may have more investment options than ever these days, but real estate still reigns supreme.
In survey results released Wednesday by Gallup, 36% of people said they think real estate is the best long-term investment. This marks the 11th straight year that real estate has safely notched the No. 1 spot in Gallup’s annual Economy and Personal Finance poll, beating out gold, savings accounts, cryptocurrency and more.
But while the popularity of real estate has stayed steady since 2014, other assets are experiencing ups and downs.
Find your actual rate at Rocket Mortgage (NMLS #3030) Today!
View RatesStocks and mutual funds, for instance, seem to be having a resurgence, with 22% of the roughly 1,000 folks polled identifying them as the best long-term investment. That’s a notable jump from the 15% who said the same in 2023 — and one that tracks with how well stocks have performed recently. (Last year, the S&P 500 gained 24%, the Dow Jones Industrial Average increased 13%, and the Nasdaq rose 43%.)
Gold, on the other hand, hasn’t been so lucky. In the 2023 Gallup survey, 25% of people picked it as their top investment; in the 2024 poll, that share fell to 18%.
Savings accounts or certificates of deposit, the boring but safe investing options that topped the Gallup list in the years around the Great Recession, came in fourth place for 2024. They were followed by bonds and crypto in the fifth and sixth spots on the list of Americans’ best long-term investments.
The best investments in 2024, according to Americans
Here’s what the Gallup respondents said when asked what they think is the best long-term investment:
- Real estate (36%)
- Stocks or mutual funds (22%)
- Gold (18%)
- Savings accounts or CDs (13%)
- Bonds (4%)
- Cryptocurrency (3%)
Real estate investing picks up
A separate report published Wednesday by Redfin found that investor home purchases have recently increased for the first time since 2022: an indication that “investor activity in the housing market is stabilizing following several years of dramatic ups and downs,” as Redfin data journalist Lily Katz wrote in a blog post.
Investors bought 44,000 U.S. homes in the first few months of 2024, which is 0.5% higher than the same time last year. They’re making money, too: The average investor home sold in March fetched nearly $175,000 more than the investor purchased it for.
“Investor home purchases more than doubled during the pandemic homebuying boom in 2021, and then plunged nearly 50% at the start of last year as declining rents and home values ate into potential profits,” Katz wrote. “But now, with home prices and rents back on the rise and the initial shock of elevated mortgage rates in the rearview mirror, investors are easing their foot off the brake pedal.”
The resurgence may seem strange because it’s a tough time to be in the housing market for so many Americans. As the Federal Reserve weighs its next moves, mortgage rates are hovering around 7%, causing would-be homebuyers to stay put rather than move and sacrifice their current low rates.
But as Redfin points out, this doesn’t affect real estate investors quite as much. While they may still be impacted by the high interest rates on loans for renovations, they largely pay in cash for the homes themselves.
More from Money:
Gold vs. Stocks: As Both Hit Record Highs, What’s Performing Better for Investors?
GameStop and Meme Stock Mania Are Back. Should You Join?
Julia Glum is Money's news editor, keeping her finger on the pulse of financial trends that affect Americans' wallets. She also writes Dollar Scholar, a weekly newsletter that teaches young adults how to navigate the messy world of money. A 2014 graduate of the University of Florida's journalism school, she previously covered breaking news, politics and education at Newsweek and International Business Times. Julia joined Money in 2018; during her time as a reporter, she wrote frequently about Amazon, passive income, stimulus checks and creative ways people make money online (think: Vine compilations, Cash App Friday and Facebook gift groups). As an editor, she oversees Money’s tax coverage, which includes extensive reporting on tax credits, year-to-year policy changes, tax refunds and the IRS’s ongoing efforts to modernize. For several years, Julia has assisted with Money’s annual Best Colleges rating and Best Places to Live rankings. Recently, she also led Money’s 50th anniversary celebrations, producing the Money Classic newsletter and rolling out Changemakers, a project profiling 50 innovators working to revolutionize personal finance. Julia has interviewed National Taxpayer Advocate Erin Collins, actor Danny Devito, Nobel Prize-winning economist Robert Shiller, rapper Killer Mike, real estate guru Ryan Serhant and many others. Her work has been cited or otherwise shared by the New York Times, Washington Post, Vox, theSkimm, Mashable, CNBC and POLITICO. She’s appeared on Good Morning America, CBS News, PIX11, WGN, the Mountain West News Bureau and more. Julia is based in New York City. You can find her at juliaglum.com.