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.