Real estate again rules as favored investment

In a sign that the housing crisis may well be behind us, more Americans say that real estate is the best option for long-term investments, ahead of both gold and stocks, according to a nationwide Gallup survey.

Gallup’s Economy and Personal Finance poll asked Americans to choose the best option for long-term investments with choices given of real estate, stocks and mutual funds, gold, savings accounts and certificates of deposit or bonds. Thirty percent of respondents chose real estate as their top investment pick, up from 25 percent a year ago. Stocks and gold were tied at second, at 24 percent.

In 2011, when gold was at an all-time high and real estate and stock values were lower than today, gold was the most popular long-term investment, at 34 percent.

Back in 2002, during the real estate boom that preceded the mortgage crisis, 50 percent of Americans regarded real estate as the best long-term investment option.

Upper-income Americans, or those with incomes of $75,000 or more, were the most bullish on real estate, with 38 percent calling it their best investment, while people earning $30,000 or less preferred gold at 31 percent compared with real estate at 28 percent.

Younger Americans between 18 and 29 were split in their investment choices, with about a quarter preferring real estate, stocks, savings accounts and gold equally. Older respondents all favored real estate as their investment vehicle of choice. Gallup believes that the differences reflect actual homeownership by these demographic groups.

Gallup conducted the telephone poll from April 3-6, seeking the opinions of more than 1,000 participants across the country. The survey has a margin of error of plus-or-minus 4 percent.