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
Advocacy
Aug 07, 2026
Key Codes Bill Clears Senate Panel
On Aug. 6, the Senate Committee on Homeland Security and Governmental Affairs advanced the NAHB-supported Promoting Resilient Buildings Act, legislation that would help communities maintain local control over building code adoption while encouraging stronger preparation for and recovery from extreme events.
Advocacy
Aug 07, 2026
NAHB’s Monthly Update Features Tariff and Economic Updates
Stay informed on the issues shaping the residential construction industry by reviewing the monthly update talking points. The latest edition features messages related to tariffs and the economy.
Latest Economic News
Economics
Aug 07, 2026
U.S. Labor Market Softens in July
The U.S. labor market weakened in July, with nonfarm payrolls down 23,000 and downward revisions cutting another 103,000 jobs from May and June.
Economics
Aug 06, 2026
Multifamily Developer Confidence Weakens in Second Quarter
Confidence in the market for new multifamily housing weakened year-over-year in the second quarter, according to the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB). The MMS produces two separate indices.
Economics
Aug 06, 2026
Mortgage Rates Climb Again as Iran Conflict Re-escalates
Re-escalation of the conflict in Iran pushed mortgage rates higher in July. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.54% in July, up 5 basis points (bps) over June. Since the conflict in the Middle East began, the 30-year mortgage rate has climbed by almost 50 bps.