Millennial and Gen-Z investors are overwhelmingly steering their individual portfolios toward alternative investments in order to stave off the volatility of inflation, according to findings from a new survey published today by Fundrise. Over 50% of respondents said they are planning to increase their allocation to alternative investments, with 74% of 18-40 year-olds surveyed expecting to invest or explore investing in real estate via online investment platforms in 2022.
Fundrise, the country's largest direct-to-investor real estate investment platform, partnered with DKC Analytics to survey 1,000 Millennial (25-40 years-old) and Gen Z (18-24 years-old) investors in late December to gauge investor sentiment and outlook for 2022. For nearly 70% of these younger investors, inflation is a top financial concern. And in their search for a hedge, the survey found that 77% currently invest in the stock market via online platforms or apps, and 66% of respondents are actively investing in alternative platforms, including real estate, venture, and cryptocurrency.
Inflation has been rising at its fastest rate since 1982, which is reason enough to cause some investors to worry. In December, the consumer-price index rose 7%, and is the third consecutive month that inflation surpassed 6%, according to recent findings from the U.S. Bureau of Labor Statistics.
"Real estate has always been one of the most attractive asset classes for professional investors, but doubly so in inflationary times," said Fundrise Co-Founder and CEO Ben Miller. "What's extraordinary this time around is that millions of Millennial and Gen Z investors are using tech-enabled platforms like Fundrise to actually lead the push into the hottest alternative assets on the market (like single-family housing), diversifying beyond stocks and bonds to an extent that was impossible for previous generations. It's hard to overstate how impactful this could be decades from now."
*Crypto increasingly seen as a safe investment *
*Investment Learning *
*There's a thirst for knowledge amongst the investors surveyed. *
About The Survey
This survey was conducted online within the United States by DKC Analytics on behalf of Fundrise from December 17 to December 20, 2021, among 1000 respondents that are representative of a sample of Gen Z (30% / 18-24) and Millennial (70%/25-40) generation investors. Results are weighted to be representative of this population, which was found at random per scientific sampling. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. The margin of error is 3.1%.
Fundrise is America's largest direct-to-investor real estate investment platform. Since 2012, it mission has been to use technology to build a better financial system for the individual. We make it easier and more efficient than ever for anyone to invest in institutional-quality private real estate—all at the touch of a button. To date, it transacted approximately $7 billion worth of real estate, and currently manage approximately $2.4 billion in equity, on behalf of our more than 210,000 active investors and 1.2MM active users.
The state of your portfolio might have you looking for alternative places to stick your money. Luckily, there are a few ways to diversify your portfolio and protect your gains against inflation and stock market volatility.
9 months, 2 weeks ago
Fine art is arguably the greatest asset class of all time..Fundrise makes it easy to get started investing in real estate. AcreTrader opens the door to farmland, a unique investment option with low volatility and high returns.
7 months, 4 weeks ago