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Turnkey Real Estate Investing

4 min read

5 Ways Real Estate Investing Wins Against the Stock Market

Wed, Jan 4, 2023

realestateversusstocks-investinginrealestate-realestateorstockmarketWe’re always evaluating the best way to secure our best financial future. There are countless strategies at your disposal – a hundred different assets to invest in and even more strategies to utilize. One of the most popular avenues of investment, however, is the stock market. While the S&P 500 has been on a rapid upward swing since 2020, 2022 saw a turn.

The stock market index has yo-yoed all year. It appears it will close on a low note, regressing to mid-2021 numbers. The real estate market has faced its own challenges this year. Investors, then, may feel at a loss.

But going into 2023, there are some serious reasons to prioritize real estate assets for your portfolio!

5 Advantages Real Estate Has Over the Stock Market

#1 – When you buy and hold, it’s not just a one-time payout

When you’re calculating the value growth of a stock, you’re looking at it in terms of a one-time payout. Its worth will fluctuate; and while you can hold that stock indefinitely and hope for growth. Even when you’re looking at assets that pay out dividends, you would need to pay $600,000 upfront for a 2% annual yield to generate $1000 each month.

It’s much more costly upfront than real estate, which can generate that kind of cash flow with a single purchase.

#2 – You can control the details

Stock performance is at the will and whim of the larger economic landscape. There are so many variables. The company could face bad PR or scandal, the market can be thrown into chaos by complex geopolitical factors, and the market cycle can drag down your growth potential.

As a real estate investor, you’re dealing with a much more controlled environment. While the economy at-large certainly can make an impact, local factors are more compelling. The performance of your investment has far more to do with your individual investment market, how the property is managed, and how you steer your portfolio. You don’t have to become an expert in global economics – just in the markets where you invest.

#3 – Real estate is less volatile

Real estate is a far more stable, reliable investment to make. Real estate is a real asset that will always retain value. Stocks can crash, burn, and disappear entirely. The same isn’t true of real estate. Because of this, you’ll find that the real estate market, though it always moves in cycles of ups and downs, is a more stable, predictable investment to make. When you’re looking for stable, reliable wealth generation, real estate is the way to go.

#4 – Real estate utilizes leverage

Remember that $600,000 stock investment you would need to make to yield reliable monthly dividends of $1000 with 2% annual returns? Consider this: even if you bought a property outright in all-cash for $200,000, you’d be able to easily earn $1000 each month in rent. In 2022, average rent prices for single-family homes hit a high of $2,495. And that’s assuming you paid for the property in full!

With real estate, it’s not just about appreciation. You benefit from cash flow as well as leverage. You could make a $40,000 down payment to secure a mortgage and yield the same monthly cash flow, utilizing a portion to pay for it.

Leverage allows you to not only use less of your own money for greater returns, but it enables you to scale and diversify your portfolio more readily!

#5 – Real estate hedges against inflation

Inflation is a stock killer. As the dollar loses its value, so do your stock earnings. This makes things like 401(k)s and other stock-heavy investment accounts to be less worth your while as the years go by. By the time you get to retirement, you’re going to need far more than you anticipated.

Real estate, though, is a hedge against inflation. The value of real estate and rent prices alike tend to grow alongside inflation, which helps investors maintain their gains over the years. And real estate doesn’t just keep up – it often exceeds inflation rates!


There are pros and cons to both real estate and stock investing. You very likely have and hold both in your portfolio. It’s not a “one or the other” situation. However, there are some compelling reasons to build your investment portfolio on the solid foundation of real estate. Don’t miss out on the opportunity to build your best financial future.


Build your portfolio with the pros who’ve seen it all… REI Nation!

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Chris Clothier
Written by Chris Clothier

Entrepreneur, writer, speaker, ultra-endurance athlete, husband & father of five beautiful children. Chris puts these natural talents on display every day. As a partner at REI Nation, Chris addresses small and large audiences of real estate investors and business professionals nationwide several times each year. Chris is also an active writer, weekly publishing real estate, leadership, and endurance training articles.