US Wealth: Stocks Overtake Homes; India Sees SIP Boom

A Goldman Sachs report in July 2026 revealed American households now hold more financial wealth in company shares than in homes, a shift not seen since World War II. This marks a pivotal moment in wealth allocation across the United States.

• American households held $64.8 trillion in company shares (including direct ownership, funds, and pension accounts) by March 2026.
• Concurrently, the total home market value stood at $48.7 trillion as of March 2026.

Despite this data, a survey conducted in April 2025 indicated that 37% of Americans still consider real estate the best long-term investment, compared to only 16% favouring shares. This sentiment has remained consistent since 2014.

Diverging Investment Preferences

The increasing cost of homeownership contributes to this divergence, with first-time buyers comprising just 21% of the market in 2025, the lowest level since 1981. Annual expenses for a typical American home, including upkeep, property tax, and insurance, reached $15,979 in 2025.

• Home insurance costs alone surged by 24% between December 2021 and August 2024.
• US house prices have quadrupled since 1995.
• An equivalent investment in the S&P 500 would have seen a sixteenfold increase before dividends over the same period.

Historically, both housing and shares have delivered an average annual return of approximately 7% after inflation, although housing has shown less volatility. Share ownership in the US remains highly concentrated, with the wealthiest 1% of households possessing around half of all US company shares.

Conversely, the bottom half of households owns a mere 1.1% of these shares. A significant portion of American share purchasing now occurs automatically through workplace retirement plans, where employees are often enrolled in target-date funds that rebalance by buying more shares when prices decline.

Indian Market Dynamics

India is also experiencing a surge in equity investments, with systematic investment plans (SIPs) reaching a four-month high of ₹31,961 crore in July 2026. However, unlike the US, India’s system is driven by individual choice, making it more susceptible to cancellations.

Indian household wealth is predominantly held in property and gold, which collectively account for two-thirds to three-quarters of total assets. Net financial savings in India stood at 5.1% of national income in FY24.

Overseas investments by Indians, particularly in US shares and bonds under the Liberalised Remittance Scheme, are rapidly expanding. These investments grew by 56% to $2.65 billion in FY26, partly spurred by the rupee’s historical weakening against the dollar.

Investing in American shares from India provides access to these companies and capitalises on the inherent demand mechanisms present in the US market.