While the investment world offers countless options, one asset consistently attracts the wealthiest Americans.
Nearly 90% of U.S. millionaires have one thing in common: real estate.
What makes this market so magnetic?
Here are five data-backed reasons why real estate remains the preferred asset for millionaires and why more women are entering the space now than ever before!
1. Reliable and Scalable Cash Flow
According to the National Council of Real Estate Investment Fiduciaries (NCREIF), private real estate investments have historically produced an average annual return of 9.6% over the past 25 years, outperforming many equities.
Many investors use rental income to cover operating expenses and reinvest the remainder, creating a self-sustaining wealth-building cycle.
2. Long-Term Appreciation and Equity Growth
Data from the Federal Housing Finance Agency (FHFA) shows that U.S. home prices have appreciated at an average annual rate of 5.4% since 1968.
Investors like Ashley Wilson, founder of Bar Down Investments, have used this model to scale multi-million-dollar multifamily portfolios by focusing on forced appreciation and value-add strategies.
3. Strategic Tax Advantages
A 2022 IRS report noted that real estate investors often have significantly lower effective tax rates compared to high-earning W-2 employees. These advantages allow investors to retain more earnings.
Barbara Corcoran, founder of The Corcoran Group and investor on Shark Tank, has repeatedly emphasized how tax strategies are a fundamental part of long-term success in real estate:
“It’s not just about what you make, it’s about what you keep. Smart real estate investing lets you grow your money and reduce your tax bill at the same time.”
Corcoran credits savvy tax planning as one of the key reasons she was able to scale her initial $1,000 loan into a $66 million real estate empire.
4. Leverage to Maximize Capital Efficiency
A 20% down payment on a $500,000 property ($100,000) allows the investor to benefit from appreciation on the full $500,000 asset.
At 5% annual appreciation, that’s $25,000 in equity growth! In other words, a 25% return on the original capital invested.
5. Inflation Hedge and Wealth Preservation
During inflationary periods like 2021–2022, residential rents in the U.S. increased by an average of 8%–12%, according to data from Zillow and Redfin.
Real estate’s ability to adjust with the market makes it an ideal asset for long-term wealth protection, particularly during periods of currency devaluation or economic uncertainty.
Women Are Closing the Gap
More and more women are entering real estate as strategic investors, syndicators, developers, and fund managers.
Professionals like Elena Cardone, Kathy Fettke, and Andresa Guidelli have scaled seven- and eight-figure portfolios proving that real estate success is not dependent on gender but on strategy, education, and execution.
For women seeking financial growth and control over future outcomes, real estate offers a proven, flexible solution.
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