Is Buying a Home Still One of the Best Long-Term Investments in 2026?

If you ask Americans what they believe is the best long-term investment, one answer continues to stand out:

Real estate.

According to Gallup’s 2026 annual survey, 38% of Americans chose real estate as the best long-term investment, putting it well ahead of stocks and mutual funds at 20%, gold at 18%, and savings accounts or CDs at 12%. Real estate has now topped Gallup’s list for 14 consecutive years.

That’s a pretty remarkable streak.

But why does real estate continue to rank so highly? And more importantly, does buying a home actually make sense as an investment for the average person?

I think it can—and there’s a big reason why.

You’re Going to Pay for Housing Anyway

Let’s start with something simple.

Whether you own or rent, you’re going to pay for a place to live.

When you rent, your monthly payment gives you a place to live, but you generally aren’t building ownership in the property.

When you buy, part of your monthly mortgage payment can go toward reducing the balance on your loan. Over time, that can help you build home equity.

And that’s one of the biggest differences between renting and owning. You’re not just paying for housing. You’re also gradually acquiring an asset.

Your Home Can Build Equity in Two Ways

There are two primary ways homeowners build equity.

1. Paying Down Your Mortgage

Every time you make a mortgage payment, a portion goes toward the principal balance of your loan.

As that balance decreases, your ownership stake in the property increases.

Early in a mortgage, a larger portion of the payment typically goes toward interest. Over time, however, more of the payment goes toward principal.

It’s not necessarily exciting to watch month to month. But over years and decades, it can add up.

2. Your Home May Increase in Value

The second piece is appreciation.

If you buy a home for $300,000 and, years later, the home is worth $400,000, you’ve gained $100,000 in market value before accounting for selling costs and your remaining mortgage balance.

Of course, home values don’t go up in a straight line, and appreciation isn’t guaranteed.

Markets can decline. Certain neighborhoods can outperform others. And individual properties can perform differently based on location, condition, improvements, and demand.

That’s why I encourage buyers to think about real estate as a long-term investment, not a get-rich-quick strategy.

But history shows why people continue to view homeownership as a powerful wealth-building tool.

The Wealth-Building Potential of Homeownership Is Significant

According to the National Association of REALTORS®, the typical homeowner had accumulated more than $214,000 in home equity over the previous 10 years as of 2025.

NAR has also reported that homeowners gained an average of approximately $140,900 in wealth over the previous five years through homeownership.

And the Federal Reserve’s financial accounts show just how significant housing wealth has become nationally: U.S. households held approximately $35.8 trillion in owners’ equity in real estate in the second quarter of 2026.

Those numbers don’t mean every homeowner will make the same amount of money.

They do demonstrate something important:

Homeownership has the potential to be a significant wealth-building vehicle over time.

There’s Another Advantage: Leverage

Here’s one of the most interesting parts of real estate investing.

You don’t necessarily need to have hundreds of thousands of dollars sitting in a bank account to own a $300,000 home.

Instead, a mortgage allows you to purchase an asset using a combination of your own money and borrowed money.

For example, imagine you purchase a $300,000 home with $15,000 down. You’re controlling a $300,000 asset—not a $15,000 asset. If that home increases in value over time, the increase is based on the value of the property, not simply the amount you originally put down.

That’s leverage.

But it’s important to understand that leverage works both ways. If the value of a property falls, the loss can also be magnified relative to the amount of money you initially invested.

That’s one reason buying a home should be viewed as a long-term decision rather than a short-term bet.

You’re Also Getting Something Stocks Can’t Give You

There’s another reason I think the real estate conversation is different from simply comparing investment returns.

You get to live in your investment.

If you buy a home, you aren’t just holding an asset in a brokerage account.

You’re living there. You’re raising your family there. You’re hosting friends. You’re building memories. You’re using the garage, backyard, kitchen, basement and everything else that comes with the property.

That’s a pretty unique investment.

The home can potentially appreciate and build equity while simultaneously providing the housing you need anyway.

What About the Argument That Stocks Are a Better Investment?

It’s a fair question. And I’m not going to tell you that you should put every dollar you have into real estate.

Stocks, mutual funds, retirement accounts and other investments can all play an important role in building long-term wealth.

In fact, the Think Real Estate article (linked above) that inspired this post points out that stocks have historically produced higher returns over certain periods.

The difference is that a home serves two purposes. It’s an investment and a place to live.

That’s why I don’t think the conversation should necessarily be: “Should I invest in real estate or the stock market?”

For many people, it can be: “How can homeownership become one part of my overall financial plan?”

The Biggest Mistake Is Thinking You Need to Time the Market Perfectly

One of the common questions from buyers is: “Should I wait until prices come down?” Or: “Should I wait for mortgage rates to drop?”

It’s understandable. Nobody wants to buy something and then see its price fall six months later.

But trying to perfectly time the housing market can be incredibly difficult. Instead, buyers should think about the bigger picture.

If you’re financially ready, plan to stay in the home for several years, have a comfortable payment, and find a property that fits your needs, you don’t necessarily need to predict exactly what the market will do next month or next year.

Real estate tends to make the most sense when you give it time.

Homeownership Isn’t Right for Everyone

This is important.

I’m a REALTOR®, so obviously I believe homeownership can be a great opportunity. But that doesn’t mean everyone should buy a home right now.

Renting can make sense if you’re not financially ready, expect to move soon, don’t have enough savings for the costs of ownership, or simply value the flexibility that renting provides.

Homeownership also comes with expenses that renters don’t have in the same way: maintenance, repairs, property taxes, insurance, and the costs associated with buying and eventually selling.

And buying a house solely because you think it’s going to appreciate is not a good enough reason to buy.

The best investment is one that fits your financial situation and your life.

So, Is Buying a Home a Good Investment in 2026?

I believe the answer is yes—when you approach it as a long-term investment and buy the right home for your situation.

Gallup’s 2026 survey tells us that Americans continue to have tremendous confidence in real estate as a long-term investment. Real estate received 38% of the vote, nearly twice the share of stocks and mutual funds. And there’s plenty of evidence showing why.

Homeownership can allow you to:

-Build equity as you pay down your mortgage
-Potentially benefit from long-term appreciation
-Use leverage to control a larger asset
-Create a form of forced savings through mortgage principal payments
-Potentially benefit from certain tax advantages depending on your situation
-Build an asset that can eventually be sold, refinanced, or passed down
-Have a place to live while building that wealth

None of those benefits are guaranteed.

But over a long enough timeline, homeownership can be a powerful way to turn one of life’s biggest expenses—housing—into an opportunity to build wealth.

The Bottom Line

You don’t have to be a real estate investor to benefit from real estate. For many people, their primary residence becomes their largest asset.

That’s why I think buying a home is about more than finding four walls you like.

It’s about finding a home that works for your life today while also putting you in a stronger financial position tomorrow.

If you’re currently renting and wondering whether buying a home makes sense for you, you don’t need to have everything figured out before you start exploring your options.

Thinking About Buying a Home?

If you’re considering buying a home in the Des Moines metro, Pleasant Hill, Altoona, Ankeny, or anywhere in Central Iowa, I’d be happy to sit down and talk through your options.

We can look at your goals, your timeline, your budget, and what homeownership could realistically look like for you.

You don’t have to be ready to buy tomorrow. Sometimes the first step is simply having a conversation and figuring out whether buying makes sense for you.

That’s what I’m here for.

Cody Voga—Your Friend in Real Estate
515-720-1714
cody@c21sre.com
@CodyVogaRealtor