Real Estate Is Still a Good Investment: How It Stacks Up Against Gold, Bitcoin
By Ralph DiBugnara
Originally published by Realtor.com · Realtor.com News
Gold is hitting record highs. Bitcoin is back in the headlines. And real estate — the asset class that built more middle-class wealth than any other in American history — is being questioned as an investment. Is it still worth it?
The short answer, according to most experts, is yes. But the case for real estate in 2025 is more nuanced than it used to be, and understanding how it compares to alternatives is essential for any investor making allocation decisions.
The Record Equity Problem
"The biggest problem is that people have record equity right now — but that's just a number on paper unless you're willing to leverage it," says Ralph DiBugnara, President of Home Qualified. "Homeowners sitting on $300,000 in equity who aren't doing anything with it are essentially leaving money on the table. Real estate's power as an investment comes from what you do with the equity, not just from watching it accumulate."
Real Estate vs. Gold
Gold has had a remarkable run, but it produces no income. You can't rent out a gold bar. Real estate, by contrast, generates cash flow through rental income while also appreciating in value over time. The combination of income, appreciation, leverage, and tax advantages makes real estate a fundamentally different — and for most investors, more powerful — asset than gold. Gold is a store of value; real estate is a wealth-building engine.
Real Estate vs. Bitcoin
Bitcoin's volatility is both its appeal and its risk. A 50% drawdown in a matter of months is not unusual for crypto assets. Real estate, while not immune to price declines, has historically been far more stable — and it's backed by a physical asset with intrinsic utility. For investors who want to build long-term, generational wealth, real estate's stability and income generation typically make it a more reliable foundation than cryptocurrency.
The Leverage Advantage
One of real estate's most powerful features is leverage. With a 20% down payment, you control a $500,000 asset with $100,000. If that asset appreciates 5%, you've made $25,000 on a $100,000 investment — a 25% return. No other mainstream asset class allows individual investors to deploy leverage at this scale with this level of safety. Gold and Bitcoin must be purchased outright; real estate can be financed.
Tax Advantages That Add Up
Real estate investors benefit from a range of tax advantages that gold and crypto investors don't have access to. Depreciation allows investors to offset rental income against a paper loss. The 1031 exchange allows investors to defer capital gains taxes indefinitely by rolling proceeds into new properties. And the primary residence exclusion allows homeowners to exclude up to $500,000 in gains from taxation when they sell. These advantages compound significantly over time.
The Case for Diversification
None of this means investors should put 100% of their wealth into real estate. A diversified portfolio that includes real estate, equities, and potentially some allocation to alternative assets like gold or crypto is generally more resilient than any single-asset approach. But for most Americans, real estate — particularly primary residence equity and investment properties — should be the foundation of their wealth-building strategy.
The biggest problem is that people have record equity right now — but that's just a number on paper unless you're willing to leverage it. Real estate's power as an investment comes from what you do with the equity.
The Bottom Line
Real estate remains one of the most powerful wealth-building tools available to individual investors — not despite the current market environment, but because of it. Record equity, leverage opportunities, and tax advantages make it a compelling choice relative to gold, Bitcoin, and most other alternatives.
The question isn't whether real estate is a good investment. The question is whether you're using yours effectively.
Talk to a financing expert about how to leverage your existing equity or structure your next investment property purchase for maximum return.