Real Estate investing vs S&P 500 for the near future?

[Justin Brin]

If you have $X amount and you are ready to invest it this year.

With interest rates remaining high and the price-to-rent ratio not compelling, is it wiser to invest in the S&P 500 rather than real estate? Even if real estate offers a slightly better return due to tax benefits and leverage, does this small gain justify the added risk, work, and time compared to the stock market?

Once Real Estate becomes more appealing again then new money can be invested into Real Estate. But for now do you think S&P 500 is a better option?

[Melissa Justice]

@Justin Brin,

Great question—and I get this inquiry daily!

Waiting on real estate for “better timing” assumes the market will become perfectly favorable all at once—low rates, great prices, strong rents, which almost never happens. Meanwhile, you're sitting on capital exposed to the volatility of the stock market, which can swing wildly based on global news, interest rate decisions, or tech earnings.

Real estate, on the other hand, offers predictable, tangible value. You're investing in a real asset that generates monthly income, benefits from leverage, and comes with built-in tax advantages like depreciation and 1031 exchanges. Even in a high-rate environment, smart deals in landlord-friendly markets can still cash flow well—especially in areas like Akron, South Bend, Birmingham, Memphis, and Locust Grove, where price-to-rent ratios are strong and inventory includes both new builds and turnkey rehabs.

And let’s not forget: real estate is far less correlated to the daily chaos of Wall Street. It’s a long-term hedge against inflation, and unlike stocks, it allows you to control your investment through strategy, improvements, and management...not just hope the market cooperates.

So while the S&P might look “easier” on paper right now, the better question is: do you want your money working predictably in a hard asset, or reacting to headlines? I’d bet on real estate every time—and if you buy right, you won’t need to wait for a perfect market to start seeing returns.

Happy to help!

Best of luck,

Melissa