Housing Loses Its Edge as an Investment Against the S&P 500

what happened

Fewer recent US home buyers now see buying a house as a better investment than stocks, according to an annual survey of buyers and sellers by the National Association of Realtors (NAR), Barron's reports. Only 32% said so, compared with 35% in 2025 and as many as 52% in 2006.

The survey covered 7,125 households that bought a primary residence between July 2025 and June 2026, with responses collected in July 2026. Almost 80% still say housing is a good investment, but that share sits near the record lows of 2011 and 2012. Moody's Analytics economists expect modest home price growth over the next five to ten years, while NAR's deputy chief economist notes that price gains have slowed even as the stock market hits record highs.

After the survey was conducted, US mortgage rates climbed above 7%, reaching 7.18%.

why it matters

For markets, this points to a shift in sentiment: if buyers see housing as a less attractive asset, demand for mortgages and expectations of price gains may weaken. Higher rates add pressure, since a fixed 30-year payment becomes more expensive. Against a stock market that Barron's describes as seemingly unstoppable, investors increasingly compare housing with equities, and housing is coming out behind.

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