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Ownership Trends: Gen Zers and Millennials
Recent data from Policygenius’s 2024 Financial Planning Survey has revealed an intriguing trend among Gen Zers and millennials. Surprisingly, these two generations are almost equally likely to own cryptocurrency as they are to own a home. In a time where homeownership is becoming increasingly unattainable for many, this finding sheds light on the evolving financial landscapes of younger Americans.
Homeownership vs. Cryptocurrency Ownership
The survey found that, on average, only 20% of Gen Z adults and millennials own a home. This pales in comparison to the 21% ownership rate of cryptocurrency within these same age groups. Delving deeper into the data, it was discovered that a mere 13% of Gen Z individuals, defined as aged 18 to 26, own real estate, while 20% own cryptocurrency. Similarly, 24% of millennials, aged 27 to 42, reported owning real estate, with 22% owning cryptocurrency.
These statistics highlight the stark reality of the U.S. housing market, where skyrocketing home prices have placed the dream of homeownership out of reach for many in these younger demographics. While previous generations perceived homeownership as a pivotal milestone and substantial investment, the current economic climate has shifted this paradigm for Gen Zers and millennials.
Generational Divide in Investment Preferences
Another significant generational disparity emerged in the realm of investment preferences between Gen Z and Baby Boomers. Surprisingly, more Gen Zers expressed ownership of cryptocurrency rather than stocks. In contrast, only 10% of Baby Boomers, aged 59 to 77, reported owning cryptocurrency, while 27% indicated they hold stocks.
Numerous Gen Z and millennial individuals acknowledge the stock market as a lucrative arena for wealth accumulation and investment. However, constraints such as limited savings and financial resources often hinder their ability to engage in traditional investment avenues. A study conducted by the Federal Reserve Bank of Richmond revealed that individuals tend to increase their stock market investments as they age. Nevertheless, the emergence of alternative investments such as cryptocurrency and non-fungible tokens suggests that younger generations may explore unconventional financial avenues as they mature.
As the financial landscape continues to evolve, it is essential for individuals of all ages to adapt to changing trends and explore diverse investment opportunities to secure their financial well-being.
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