Real estate vs. stock market: Where Americans prefer to invest

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The Brief

• A new Bankrate survey shows the stock market is now the top choice for long-term investing, overtaking real estate.

• 27% of Americans picked stocks as their preferred investment, while 24% chose real estate—a decline from 29% in 2022.

• Volatility remains the biggest concern, with 34% of non-stock investors saying they avoid stocks due to market swings.

• Cryptocurrency remains unpopular, with 78% of Americans saying they’re not comfortable investing in Bitcoin or similar assets.

LOS ANGELES – A new Bankrate survey found that Americans now favor the stock market over real estate for money they won’t need for at least 10 years.

The survey, conducted Jan. 17-19, found that 27% of respondents chose stocks as their top investment, up slightly from 26% in 2022. Meanwhile, real estate fell to 24%, down from 29% in 2022, marking a shift in investment preferences after years of a booming housing market.

How Americans rank long-term investments

By the numbers

Here’s how survey respondents ranked their top long-term investment choices:

• Stock market – 27%

• Real estate – 24%

• Cash investments (savings, CDs) – 21%

• Gold and other precious metals – 9%

• Bitcoin/cryptocurrency – 6%

• Bonds – 6%

• Other investments – 7%

The shift away from real estate comes as mortgage rates remain elevated and home prices continue rising, making real estate a less accessible option for many investors.

Why some Americans avoid the stock market

What they’re saying

Despite strong market performance, many Americans still hesitate to invest in stocks. The survey found that among those who did not pick the stock market, the top concerns were:

• 34% – “Too much volatility”

• 21% – “Intimidated by the stock market”

• 13% – “The stock market is rigged against individuals”

• 13% – “Focused on preserving money rather than growing it”

• 12% – “The investment returns won’t keep pace with others”

“Volatility and intimidation are the top reasons cited for those not choosing the stock market,” said McBride. “Fortunately, a solution exists—broad stock market index funds diversify risk over hundreds or even thousands of stocks, reducing the impact of volatility on any one stock or sector.”

Young investors are more open to cryptocurrency—but most still avoid it

The backstory

Cryptocurrency remains a niche investment, with only 6% of Americans naming it as their top long-term investment choice.

According to the survey, 78% of Americans said they are not comfortable investing in cryptocurrency, a slight increase from 75% in 2022.

Generational comfort with crypto

The survey found that younger generations are more open to investing in crypto than older ones:

• Gen Z – 28% comfortable | 70% uncomfortable

• Millennials – 30% comfortable | 69% uncomfortable

• Gen X – 21% comfortable | 76% uncomfortable

• Baby Boomers – 6% comfortable | 91% uncomfortable

The generational gap highlights how younger investors are more willing to explore digital assets, but overall, cryptocurrency still struggles to gain mainstream trust as a reliable investment.

Investment preferences vary by income and education

The survey also found stark differences in investment choices based on income and education levels:

• Higher-income households ($100K+ annually) were more likely to prefer stocks (41%) than lower-income households earning under $50K (14%).

• Lower-income households were twice as likely to prefer cash investments (28%) compared to higher earners (13%).

• Stock market preference increased with education level:College graduates – 38% prefer stocksSome college education – 27% prefer stocksHigh school degree or less – 17% prefer stocks

• College graduates – 38% prefer stocks

• Some college education – 27% prefer stocks

• High school degree or less – 17% prefer stocks

What this means for investors

What’s next

Experts say the survey reflects a growing confidence in the stock market, which delivered more than 20% returns in both 2023 and 2024. However, volatility remains a major concern, and many Americans still prefer real estate, cash, or other alternatives.

“What is surprising is the strong preference for cash among so many long-term investors,” said Greg McBride, CFA, Bankrate’s chief financial analyst. “While cash is entirely appropriate for short-term horizons, it is the worst choice over time horizons of a decade or more as inflation chews up much or all of an investor’s return.”

As investment preferences evolve, the stock market’s lead could continue to grow—especially as mortgage rates and home prices remain high, making real estate less accessible.

The Source

This report is based on findings from the Bankrate 2025 Long-Term Investment Survey, conducted Jan. 17-19, 2025, polling 1,033 American adults.