The chart above shows that since 2000, real estate has been a solid investment, even considering the drop in values the market experienced over the past few years.

Let’s say you had $100,000 to invest in 2000.  Had you put it in the DOW, that $100,000 would now be worth $106,700.  You would not have faired as well had you placed it all in the S and P where your $100k would now be worth only $88,000 or the NASDAQ where it would be worth only $70,000.  Real estate would have been the clear choice since that $100,000 would have gained 43% on average, which means that $100k is now $143,000!!

Source:  Steve Harney (Keeping Current Matters)