Source: UBS —
An illiquid, indivisible bulk asset with high transaction costs, residential real estate presents complications for investors whose focus is wealth-accumulation. But that doesn’t mean you should discount housing as a key part of your investment story.
After a year that saw diverging fortunes for the housing and equities markets, Americans have been looking to real estate as their ticket to easy street. That’s at least according to a CNBC: Your Money/Momentive poll taken last month.
Of those surveyed, 23% chose real estate investment over stock-picking (16%), starting a business (15%) and pursuing a side hustle (12%) as the best way to build personal wealth. With US home prices up 8.6% in the 12 months ending in November, according to data from CoreLogic, and the S&P 500 closing down 19.4% in 2022, the sentiment is not without its logic.
