Stocks are significantly outperforming housing over the US over the long run: Since 1975, the S&P 500 has delivered an average annual total return of +12.2%. This is more than double the +5.1% annual gain in US home prices over the same period. Even without reinvesting dividends, the S&P 500 has still returned an average of +9.3% per year, outperforming house price appreciation. After adjusting for inflation, the gap is even wider, with the S&P 500's real total return at +8.3% over the last 50 years, nearly 6 times the +1.4% real annual return of US home prices. At the same time, the S&P 500 excluding dividends and adjusted for inflation has returned +5.4% per year, on average. Stocks have been a far more powerful driver of wealth creation than housing.