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Rate of People That Prefer Real Estate Over Investing in the Stock Market Returns to Pre-COVID Levels

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Friday April 9, 2021
Rate of People That Prefer Real Estate Over Investing in the Stock Market Returns to Pre-COVID Levels

According to a recent study of consumer preferences towards home ownership and how those were impacted by COVID, conducted by the Federal Reserve Bank of New York, 90% of the individuals questioned believed that being a homeowner was preferable to investing the same amount of money in the stock market. Moreover, more than 50% of respondents believed owning rental property was a better option than investing in the stock market.
It appears that the COVID crisis has caused many people to place a premium on comfort and stability. Most of those surveyed placed a heavy emphasis on comfort and stability rather than a standard return on investment (“ROI”), even though the housing market has been read hot. The stability of the housing market is nothing to sneer at either; when COVID began, and the S&P 500 dropped 20% in the first quarter, the Case-Shiller National Home Price Index increased by 1.4%.
Notably, the study found that the preference for homes, rather than stocks, dropped in October 2020, but returned to pre-COVID levels in February 2021; indicating that the majority of those surveyed may believe the worst of the pandemic is behind us. Regardless of whether that is true, consumer expectations have a significant impact on the market and the trajectory associated markets take. All-in-all, this is exceptionally good news.
At the Chernov Team we understand that knowledge is power, and knowledge of consumer preference is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.

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