A recent survey reveals that a fifth of US Gen Zs and millennials hold crypto assets, while only 20% of them own real estate. Faced with soaring property prices, younger generations are exploring alternative methods to build their wealth.
Young generations focused on crypto assets
According to the financial planning survey conducted by Policygenius from October 16-19, 2023 among 4,063 American adults, Generation Z (18-26 years old) and millennials (27-42 years old) are much more likely to invest in crypto assets and NFTs than their elders. Indeed, 20% of members of generation Z and 22% of millennials own cryptos, compared to only 5% of baby boomers and 10% of members of generation X.
This preference for alternative assets takes place in a context of difficulties in accessing real estate ownership. Only 20% of young adults surveyed are owners, while this rate reaches 45% among baby boomers. The latter have largely benefited from real estate wealth in the past, an opportunity that new generations no longer have.
Myles Ma, analyst at Policygenius, explain : “ Younger generations are diversifying their investments, particularly in cryptos. This trend may reflect a greater propensity to take risks, but it is also the result of structural barriers like the shortage of affordable housing.“
A generational trend confirmed!
Since the Great Recession, becoming a homeowner has never been harder. While real estate represents nearly 50% of baby boomers' assets, only 20% of young people own it.
This trend is confirmed on a large scale. As of April 2023, Bitget showed that 46% of millennials in major economies hold crypto. In October 2022, Charles Schwab revealed that 50% of Generation Z and millennials want to include digital assets in their retirement, and more than 43% are already investing in them on the side.
Despite the complexity of modern finance, Generations Z and Y are “quite proud” of their management skills. A proactive approach that demonstrates their thirst for independence and diversification, beyond traditional investments.
Younger generations are showing creativity to build their heritage, shaking up conventions. If crypto is clearly in their favor, this disruptive approach says a lot about their ability to adapt to current economic challenges.
But beyond a possible fashion effect, this rush of young people towards crypto assets could well be a groundswell which will lastingly transform the financial markets.
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