Real estate is still the most favored long-term investments to Americans, continuing its streak since 2013, the latest Gallup report says.
The Gallup Poll Social Series aims to monitor the adult American's views on various political, social, and economic topics. Gallup conducts one GPSS survey (Gallup Poll Social Series) each month, interviewing 1,000 U.S. adults and covering a different topic for each survey month; the month of April covers economy and finance.
According to data from the Gallup's annual Economy and Personal Finance survey, which was conducted April 1-14, 35 percent of Americans favor real estate as the best long-term investment.
Stock or mutual funds dropped by more than a third due to the pandemic. Twenty-one percent listed stocks as the best investment, down by six percentage points from 2019, and is the lowest recorded level since 2012.
On the other hand, 17 percent of respondents chose savings accounts, and 16 percent named gold as the best long-term investment. Gold was the top favorite in 2011 - 2012 when real estate was reeling from the subprime mortgage crisis and was deemed a risky investment.
Real estate has remained to be the top pick for long-term investment among American adults, a position it has held for seven straight years now. Real estate also has been the top favorite investment by more than a third of Americans since 2016.
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Meanwhile, Norada has listed the 20 best cities to invest in real estate in 2020 based on housing market trends, the rate of appreciation, and rental prices, among other factors. The top five cities include Boise, Idaho; Dallas and Houston, Texas; Atlanta, Georgia; Las Vegas, Nevada; and Orlando, Florida.
1. Boise, Idaho takes the top spot and holds the record of being one of the best long-term investments in the U.S., the Norida report said. The city's expected 2020 yearly percentage growth for both homes and prices are 0.3 percent and 8.1 percent, respectively.
Other reasons why Boise is the top-ranked place to invest in real estate include strong population growth and job growth. Population and job growth in Boise is triple than the national average; job growth is 2-3 times the national average. Boise also has a low unemployment rate, which is at 3.5 percent. The 1-year appreciation forecast for Boise is 3.2 percent.
2. Dallas, Texas, follows Boise due to its strong housing inventory and high rental rates relative to the house prices. Demand for rental units in Dallas has risen 14 percent compared to last year; 52.9 percent of the population rents, above the national average of 33 percent. The 3-year appreciation forecast for Dallas is 11.4 percent.
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2. Houston, Texas, is tied with Dallas on the second spot. Houston is a very attractive place to invest in real estate primarily because trade volumes are high, and turnover is fast. When it comes to job creation, Houston tops the national list, which is why its unemployment rate is far below the national unemployment rate. The 3-year appreciation forecast for Houston is 10.5 percent.
3. Atlanta, Georgia, also ranks high among the best cities to invest in real estate in 2020. Atlanta is one of the most productive states, ranking 8th in the U.S. for GDP. Its population has grown by more than 14 percent in the last ten years, with the city's population expected to grow by 2 million people by 2020. The 3-year appreciation forecast for Atlanta is 9.3 percent.
4. Las Vegas, Nevada, is ranked fourth among the best cities to invest in real estate for many reasons, including its friendly business environment. Las Vegas residents and businesses benefit from no state tax - individuals and corporations - and lack of other business-related taxes. The average apartment rental income in Las Vegas is $1,107, which has increased 5 percent compared to last year.
5. Orlando, Florida rounds out the top five best cities to invest in real estate in 2020. Orlando was chosen primarily because it is among the top favorite tourism and entertainment destinations. Orlando is mostly a renter's market where over 60 percent of the city's population rents.
Read the full Norada Real Estate Investments report here.
