Stocks vs. Houses: The Real Long-Term Winner

This episode compares buying the average U.S. home in 1995 versus investing the same $153,500 in the S&P 500 through 2024, showing the house growing to about $557,000 while the S&P investment reached $1.43 million (about $2.68M with dividends reinvested).

The hosts break down pros and cons: stocks offer diversification, liquidity, and higher long-term growth but come with volatility; real estate provides leverage, income potential, and tangibility but has upfront costs, ongoing expenses, and less liquidity. REITs are presented as a hybrid option offering real estate exposure with stock-like liquidity.

Bottom line: there’s no one-size-fits-all answer—choice depends on goals, risk tolerance, and desire for income versus growth; diversification or a blended approach is often recommended.