Ultra-wealthy individuals have increasingly turned to real estate as a way to diversify their investments, particularly during the third quarter of this year, according to a new survey from The Wall Street Journal and Barron’s.

The shift in investment strategy comes as those investors express growing confidence in the economy.

The survey, conducted in early September with 828 readers of The Wall Street Journal and Barron’s, found a sharp jump in interest in rental properties among the wealthiest respondents.

36% of those with more than $5 million in investable assets have added residential rental properties to their portfolios, a 13-point rise from the previous survey in May.

By contrast, 35% are investing in vacation homes or secondary residences, though the figure has dropped by 3% since May. For respondents with under $5 million in investable assets, 20% are investing in rental properties or second homes.

The survey also revealed the ultra-wealthy were more likely to invest in real estate compared with those with assets under $5 million, suggesting the wealthiest individuals are increasingly viewing real estate as a key investment vehicle.

The growing interest in real estate matches a wider sense of optimism among investors about the economy. About 24% of the respondents believe the economy will strengthen in the next 12 months, up from 18% a year ago.

And 37% of respondents are now more positive about the real estate market, a six-point increase from last year. This shows more people, including wealthy investors and the general public, are becoming more confident in real estate as a great investment.

Perhaps the decline in mortgage rates earlier in the year helped fuel a more positive outlook on property investments. Anaima Troncoso, a senior research analyst for WSJ Intelligence, agrees, noting the optimism could be due to the recent dip in mortgage rates.

In mid-September the 30-year fixed mortgage rate hit a 19-month low of 6.2%, although it has since risen back to nearly 7%.

Concerns about inflation have vanished sharply, meanwhile, falling by 30% from the second quarter. But recession fears have become a more prominent source of economic pessimism.

That shift in sentiment was measured before the U.S. presidential election, and leadership issues, both presidential and congressional, emerged as top concerns for many respondents.

Investors are also focusing on diversifying their portfolios to manage risk. According to the survey, about 40% of respondents plan to invest in more defensive sectors such as consumer staples, healthcare and utilities.

The survey also found that respondents were split on their approach to investing: 53% identified themselves as self-directed investors, and 47% relied on financial advisors. But while many have advisors, they remain actively involved in their financial decisions.