Which is the better investment, stocks or a home? Answers here.

Soaring home prices in recent years may have you convinced real estate rises in value at the same rate as stocks.

You may be in for a surprise. Over the past 30 years, stock prices have risen at four times the pace of home prices, according to a Motley Fool analysis.

Since 1995, home prices have risen by about 310%. In the same span, the S&P 500 index has risen by about 1,200%. Add in dividends, and total S&P returns exceed 2,200%.

“By and large, stocks are your best-returning asset class. Nothing really comes close,” said Matthew Argersinger, a senior investment analyst at The Motley Fool.

Here’s another way to compare the two investments: Between 1992 and 2024, the S&P yielded an average return of 10.4% a year, according to the financial journalism site Investopedia. In the same years, home prices grew by about 5.5% annually.