Two-Thirds of Americans Turn to Real Estate for Investing: Survey Reveals

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  Stocks and Investing on Mon, Dec 22nd, 2025 by AOL

Real Investing in America: Why Two‑Thirds of the Population Are Turning to Property

Published by AOL Finance – a recap of the 2024 “Two‑Thirds of Americans Are Real Investors” feature

The latest article from AOL Finance uncovers a surprising trend in American investing habits: roughly 66 % of the population is actively involved in real‑estate investing. The piece blends survey data, expert commentary, and practical tips to explain why property continues to be a favored avenue for wealth creation—even as digital assets and stock markets attract younger investors.

1. The Big Picture: What the Survey Reveals

A national survey commissioned by the National Association of Realtors (NAR) and highlighted in the article shows that two‑thirds of U.S. adults are investing in real property—either by owning residential units, purchasing commercial spaces, or holding stakes in Real Estate Investment Trusts (REITs). The survey, conducted in late 2023, sampled over 3,000 respondents and asked them to identify all the assets they considered “investments” beyond savings accounts and retirement plans.

Key take‑aways:

The article stresses that the high rate of “home ownership as an investment” is partly a legacy of the U.S. mortgage‑financing culture and the perception that owning a home is inherently “safe.”

2. Why Property Continues to Appeal

a. Tangible Asset and Physical Security

Investors love the idea that their money is backed by a physical structure. Real estate is perceived as “hard” capital, less susceptible to the volatility that plagues the tech‑heavy equity markets.

b. Cash Flow Potential

Rental income provides a regular stream that can offset mortgage debt or be reinvested. The survey indicates that 62 % of multi‑unit owners report positive cash flow, and 18 % claim they pay their mortgage entirely with rent.

c. Tax Advantages

Depreciation, mortgage interest deductions, and 1031 exchanges create a tax environment that’s attractive, especially for seasoned investors. The article links to IRS guidance on “Real Estate Depreciation” and a side‑by‑side comparison of the effective tax rate for rental income versus long‑term capital gains.

d. Appreciation Over Time

Even during market downturns, real estate tends to rebound over the long term. The article cites the NAR “Home‑Price Index” and notes a 4.7 % annualized appreciation rate since 2000, outpacing the 3.8 % average in the S&P 500 during the same period.

3. Types of Real‑Estate Investments Covered

The article’s graphic illustrates the distribution and shows that many investors hold more than one property type, often using rental units to diversify cash flow.

4. Risks and Realities

Liquidity Constraints – The article notes that real estate is one of the least liquid asset classes. A typical sale can take 60‑90 days, and transaction costs (real‑estate agents, closing fees, repairs) can eat into profits.

Maintenance & Management – 47 % of respondents reported that property maintenance costs were the largest unexpected expense. The article recommends hiring a property manager or using a “turnkey” REIT if you lack time.

Market Timing – Although appreciation is the norm, local market conditions vary. A small, rural town may see a slower recovery after a downturn, whereas a high‑demand metro area may rebound quickly.

5. How to Get Started (Guidance from the Article)

1. Start Small – Consider a single‑family rental or a low‑cost REIT before jumping into a multi‑unit complex.
2. Leverage Financing Wisely – The piece highlights the benefits of using a 30‑year fixed‑rate mortgage with low down‑payment options (10 %) while still maintaining an emergency fund.
3. Diversify Within Real Estate – The article encourages pairing residential rentals with a commercial property or a land hold to spread risk.
4. Use Tax Tools – 1031 exchanges and depreciation schedules can defer taxes, but the article cautions that timing and proper bookkeeping are critical.
5. Educate Yourself – The article links to an NAR “Investor Education” portal that covers market analysis, zoning, and tenant law.

6. Alternative Paths and Complementary Investments

The piece also discusses how many of the same respondents are juggling real‑estate investments with retirement accounts (401(k)s, IRAs) and stock‑market funds. According to the survey, 58 % hold a 401(k) and 43 % invest in mutual funds or ETFs. The article stresses that a well‑balanced portfolio often combines real‑estate (for cash flow and tax benefits) with liquid equities (for growth) and bonds (for stability).

7. Expert Opinions

• Dr. Linda Park, University of Texas – “Real estate provides a unique blend of income and appreciation that isn’t found in other asset classes. For many Americans, it’s the bridge between saving and investing.”
• Michael Chen, Portfolio Manager at Capital Realty – “The current low‑interest environment is a double‑edged sword: cheaper borrowing but higher risk if property values stall. Proper due diligence is essential.”

Both experts urge novice investors to start with a low‑risk, diversified REIT portfolio to gain exposure before stepping into direct ownership.

8. Bottom Line

The AOL Finance article paints a picture of an American market that is increasingly real‑asset‑oriented. Whether through owning a primary home, renting out an extra unit, or buying a stake in a REIT, two‑thirds of the population are channeling their savings into tangible property. The upside—cash flow, tax breaks, and long‑term appreciation—is tempered by liquidity constraints, maintenance costs, and market volatility.

For those considering real‑estate investing, the article offers a clear set of guidelines: Start modestly, educate yourself, leverage financing prudently, and maintain a diversified portfolio. In a landscape where digital assets and crypto are still a niche interest for most, real‑estate remains the most familiar—and in many cases, the most effective—way for Americans to build lasting wealth.