The Stock Market Is at Record Highs. Is Now the Time to Look at Real Estate Instead?

Written by:

Alejandra Rodriguez

Date:

01 May 2026

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If your investment portfolio is mostly stocks right now, you’ve probably been feeling pretty good lately. Markets have been hitting new records. But some experienced investors are quietly asking a different question: Is this the moment to take some chips off the table and move into real estate?

It’s a question worth sitting with — especially because the two asset classes are moving in opposite directions right now.

Two Markets Moving in Opposite Directions

Adam Gower, founder of GowerCrowd and a commercial real estate veteran since the early 1980s, has lived through the savings-and-loan crisis, the dot-com bust, and the 2008 financial collapse. Today, he works with experienced real estate operators across the country, and sees a widening gap between equities and property values.

“The stock market continues to be at record highs and keeps hitting new records,” Gower says, “and yet real estate is just beginning to pull out of a low.” When two major asset classes diverge like this, long-term investors tend to pay attention. The classic logic — buy low, sell high — suddenly has a very practical application.

Why Real Estate Has Been Down

The past few years were rough for commercial real estate. Rising interest rates hit hard, particularly for operators who had taken on floating-rate debt or made aggressive assumptions about future values. Some deals that looked fine on paper in 2021 were underwater by 2023.

That pain created something useful for buyers: distressed opportunities. Properties that need to be sold, deals that need to be restructured, and prices that reflect the difficulty of the past few years rather than the optimism of the years before. Gower describes the current window as opportunistic, noting that discounted acquisitions exist but require patience and diligence to find.

The Bigger Risk

Real estate is a long-term investment — you’re typically looking at a three- to five-year horizon, at minimum. And over that timeframe, something significant is happening in the broader economy.

AI is already affecting which industries grow, which shrink, how people work, and where they live. Gower has been writing extensively about this, and his point is straightforward. If you’re making a real estate investment today without considering how the economy might look in five years, you’re overlooking a major variable.

“If you don’t acknowledge that society and the economy are going to be fundamentally changing during the life cycle of your deal, you are missing a major point,” Gower says.

This isn’t a reason to avoid real estate. It’s a reason to think carefully about what kind of real estate you’re buying and where you’re buying it. A warehouse serving e-commerce logistics faces different demand pressures than a suburban office park, and those differences are likely to widen as automation and remote work continue to reshape daily life.

What This Means for Investors

If you’re an accredited investor — someone who meets the SEC’s income or net worth thresholds — private real estate deals are more accessible than they’ve ever been. Minimum investments at some firms have come down to $25,000, and the ability to research and compare deals online has made the process far more transparent than it was even a decade ago.

But accessibility doesn’t mean simplicity. Several factors are worth keeping in mind as you evaluate whether now is the right time to diversify.

Understand what you’re buying. Commercial real estate covers an enormous range — multifamily apartments, self-storage, industrial, medical office, data centers, and retail. Each behaves differently under different economic conditions. The asset class that thrives if remote work continues to grow looks very different from the one that benefits from an aging population.

Think about the operator, not just the deal. In private real estate, you’re betting on the person running the project as much as the property itself. Look for operators with experience across multiple market cycles, not just a strong run during easy years.

Ask about the debt structure. Many deals that went sideways in recent years did so because of how they were financed, not because the underlying real estate was flawed. Understanding whether a deal uses fixed or floating-rate debt, when loans mature, and how much leverage is involved can reveal risks that marketing materials gloss over.

Don’t let the pressure of opportunity push you into skipping due diligence. Real estate looks attractive relative to stocks right now. But “attractive” and “right for you” aren’t the same thing. The investors who benefit from moments like this are the ones who move thoughtfully, not quickly.

Looking Ahead

The gap between a surging stock market and a recovering real estate market is real, and it’s the kind of gap that has historically rewarded patient, informed investors. But the landscape these investments will mature into — shaped by AI, changing work patterns, and evolving demand for physical space — adds a layer of uncertainty that previous cycles didn’t carry in quite the same way. The opportunity exists. The question is whether you’re positioned to evaluate it clearly and act on it wisely.

About the Expert: Adam Gower is the founder of GowerCrowd and a commercial real estate veteran whose career spans the savings-and-loan crisis, the dot-com bust, and the 2008 financial collapse. He works with experienced real estate operators across the country and writes extensively on the intersection of private real estate investing and emerging economic forces, including the long-term impact of AI on property markets.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.