My estranged dad left me $420K when he died and I want to make the most of it. Should I invest in stocks or buy a house?

Core Insights - The baby boom generation holds $19 trillion in residential real estate, representing a significant portion of the $47.9 trillion U.S. owner-occupied housing market, raising questions about the current effectiveness of real estate as a wealth-building tool [1] Investment Options - A 32-year-old single mother, Lena, is considering two investment options for her inherited $400,000: purchasing a home for stability or investing in the stock market for long-term wealth accumulation [2] Stock Market Benefits - Historically, stocks have outperformed real estate, with an average inflation-adjusted annual return of 7.66% for S&P 500 index funds compared to a 5.5% annual appreciation in U.S. residential real estate over the past 30 years [3] Key Differences - Stocks are generally more volatile than the housing market, which tends to grow steadily, and success in the stock market requires disciplined investing, favoring diversified index funds over frequent trading [4] Long-term Growth Potential - Given Lena's age and her son's youth, investing in stocks allows for long-term compound growth, with projections indicating her $400,000 investment could grow to approximately $1.21 million in 15 years and around $5.3 million in 35 years [5]