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Wondering what the best long-term investment option is for your money? According to Bankrate's latest Financial Security Index survey, most Americans agree that the answer is real estate. Conducted between July 9 and 12, the survey asked 1000 adults living in the continental United States, "For money you wouldn't need for more than 10 years, which one of the following do you think would be the best way to invest it?" With 27% of respondents selecting it, real estate became the top choice for the first time in three years.

In the first half of 2015, the number of homes entering foreclosure was down 4% from the same time one year ago and down 18% from before the housing bubble burst in 2006. However, the average length of time required for these homes to complete the foreclosure process has greatly increased in the same time. Therefore, while the number of homes entering foreclosure is down, those that do complete the process have often sat vacant for a far greater length of time. The longer a distressed home remains unoccupied, the more likely it is to be in poor condition. This means that banks are generally willing to sell them at an even greater discount than usual!

Thinking of renting your next place to live? You may want to pu that thought on hold. According to REIS Inc., a real estate research data firm, the average effective rent rose by 3.6% in the second quarter compared to the same time in 2014. In fact, the cost of renting has been rising continuously since 2012, with typical annual growth of around 4%.

What is the culprit behind these soaring rent costs? According to REIS, a small supply of new units as well as a low vacancy rate for existing units (just 4.2%) are driving competition among potential renters, resulting in higher costs. However, some relief may be on the horizon, as there are 230,000 new units projected to be built this year, which is nearly double average.

Several of the markets with the largest rent increases are in areas with strong technology sectors, such as San Jose and San Francisco, where rents rose 7.2 percent and 6.8 percent, respectively. Average rent in San Jose now stands at $1,951 a month, while in San Francisco the average is $2,316 per month. These both pale in comparison to the nation's most expensive rental market, New York City, where rent is now $3,294 per month. On the plus side, that figure represents only a 1.7% increase from the same time last year.

All in all, this just means that there is another good reason to get out there and buy a home!

Source: Renters Face More Cost Increases