Households View Housing as a Good Investment Versus Stocks
A recent study by the Federal Reserve Bank of New York found that most households view housing as a good investment in comparison to the stock market.
When asked to choose between investing in a rental property or the overall stock market, more than 50% of the households recommended housing in all three administrations of the New York Fed survey, which was run in February 2020 (largely before the COVID-19 outbreak in the United States), October 2020 and February 2021.
Another question asks whether a young couple should buy a primary residence or invest in the stock market and the preference for housing is much stronger in this response with more than 90% of the survey respondents choosing to buy a home.
In selecting housing as a better investment over the stock market, most survey respondents cited “desired living environment and provides stability,” “housing prices less volatile,” and higher house prices as their primary reasons. Fewer respondents selected any of the other reasons, including for example, saving from rent, stability, locking in housing costs, and the amortization schedule as a commitment device for saving.
Latest from NAHBNow
IBS
Dec 31, 2025
Your Ultimate Guide to the 2026 International Builders’ ShowThe NAHB International Builders’ Show® (IBS) is where tens of thousands of residential construction pros from around the world come to see what’s new and what’s next in home building.
Education
Dec 30, 2025
NAHB's Most Engaging Shop Talk Sessions of 2025The most popular discussions featured topics such as the next generation of women in construction, social media strategies to elevate your business and the art of networking.
Latest Economic News
Economics
Dec 22, 2025
State-Level Employment Situation: September 2025In September 2025, nonfarm payroll employment was largely unchanged across states on a monthly basis, with a limited number of states seeing statistically significant increases or decreases. This reflects generally stable job counts across states despite broader labor market fluctuations. The data were impacted by collection delays due to the federal government shutdown.
Economics
Dec 19, 2025
Existing Home Sales Edge Higher in NovemberExisting home sales rose for the third consecutive month in November as lower mortgage rates continued to boost home sales, according to the National Association of Realtors (NAR). However, the increase remained modest as mortgage rates still stayed above 6% while down from recent highs. The weakening job market also weighed on buyer activity.
Economics
Dec 18, 2025
Lumber Capacity Lower Midway Through 2025Sawmill production has remained essentially flat over the past two years, according to the Federal Reserve G.17 Industrial Production report. This most recent data release contained an annual revision, which resulted in higher estimates for both production and capacity in U.S. sawmills.