Study Shows Americans Still Consider Homes Good Investments

By Kyle Chezum Updated on 4/25/2011

As home values continue to drop and home investments continue to lose value, many individuals have begun to question whether purchasing a home is still a wise idea.  The media, which strongly influences popular opinion, has carried reports from many economists stating that owning a home is no longer worth the financial risk.  Not in today's market, at least.  But a recent survey conducted by Pew Research suggests the average American thinks otherwise.

In the survey, 81% of American adults claimed that they believe a home is the best long term investment anyone can make.  This is a startlingly high number.  Note that the survey results mark home ownership as the "best" long term investment, not just "one of the best."  This says something unexpected about public opinion surrounding the housing sector.

The survey report shows that 37% of adults strongly agree that a home is the best investment, while an additional 44% moderately agree.  Pew Research considers both these answer categories as affirmative, creating the 81% total mentioned above.

The most shocking statistic, though, is that the number of adults who believe home ownership is the best long term investment has only decreased 3% since 1991.  Yes, it has decreased, rather than increased, but considering the number of wounded former homeowners who have lost money in the wake of the financial crisis, the drop is marginal and surprisingly small.