Young people forgo homeownership to invest in the stock market

Published: Saturday, November 29, 2025 at 4:56 pm

Young Investors Embrace Stocks, Delaying Homeownership

A significant shift is underway in how young people are approaching wealth building, with a growing number prioritizing stock market investments over traditional assets like homeownership. This trend, fueled by the accessibility and perceived ease of investing, is reshaping the financial landscape for the younger generation.

According to Kevin Gordon, a macro strategist at Charles Schwab, the meme stock frenzy of 2020 played a pivotal role in altering how young people view wealth accumulation. The rapid rebound of the market after a 20% drop may have instilled a belief that "buying the dip" is a low-risk strategy.

Data supports this shift. Retail trading activity has doubled since 2010, now accounting for approximately a quarter of daily trading volume. Furthermore, the proportion of 25-year-olds with investment accounts has surged sixfold in the last decade. Financial assets and investments are becoming a more prominent component of young people's wealth portfolios.

However, this trend raises concerns. Jos Torres, a senior economist at Interactive Brokers, suggests that the move away from homeownership, particularly among young and lower-income individuals, could exacerbate the wealth gap. Historically, homeownership has been a cornerstone of wealth creation for Americans, representing nearly half of their total wealth and often being their most valuable asset. The median net worth of U.S. households increased significantly between 2019 and 2022, largely due to rising home equity.

The barriers to homeownership are increasing, while investing has become more accessible and affordable. Trading platforms offer easy access, requiring minimal upfront investment and paperwork.

Despite the shift, there are positive aspects. Gen Z is better positioned for retirement compared to older generations, thanks to increased access to employer-sponsored retirement plans. This allows them to start saving and benefit from compounding earlier in their careers. Some experts suggest that the delay in homeownership may be due to affordability issues, which could change as interest rates fluctuate.

The future of this trend will be tested during the next market downturn. If young investors panic and sell their holdings, their retirement savings and their faith in the market could be jeopardized.

BNN's Perspective: While the increased accessibility of the stock market is a positive development, the potential long-term consequences of delaying homeownership warrant careful consideration. A balanced approach, combining diversified investments with a long-term view, is crucial for building sustainable wealth. The next market downturn will be a critical test for this new generation of investors.

Keywords: Young investors, stock market, homeownership, wealth building, Gen Z, retail trading, investment accounts, retirement, market downturn, financial assets.

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