Which is the better investment, owning a home or owning stocks? If you ask most Americans, chances are they prefer the former. A new study from the Federal Reserve Bank of New York examined consumer preferences toward being a homeowner and how their attitudes have changed over the course of the COVID-19 pandemic. Survey participants were asked to rate which was the better investment — a home or financial assets such as stocks — and what factors contributed to their choice.
The study found that over 90% of respondents preferred owning their primary residence rather than investing in the stock market. A majority of survey-takers also favored the idea of being a landlord to purchasing stocks, with more than 50% of the participating households preferring to own a rental property.
The most common reasons people cited in choosing to house over stocks seemed to be about comfort and stability, rather than seeking a better return. The most commonly-selected responses were that the home was their “desired living environment” and “provides stability” and that house prices were “less volatile.”