Generation Z and millennials own cryptocurrency and real estate.

According to new data from a financial planning survey published on Tuesday by Policygenius for 2024, Generation Z and millennials are almost equally likely to own cryptocurrency as they are to own property, such as a home. The survey found that only 20% of adult members of Generation Z and millennials own a home, which is a relatively low percentage. In comparison, 21% of respondents from these age groups own cryptocurrency on average.

If we break it down further, only 13% of Generation Z members (aged 18 to 26 currently) own real estate, while 20% own cryptocurrency. Meanwhile, 24% of millennials (aged 27 to 42) report owning real estate, while 22% have crypto assets.

This is not surprising given the tight housing market in the U.S. While for older generations, owning a home was a key milestone and one of their earliest (and largest) investments, this dream has become unattainable for many.

Housing prices rose by 6.4% in February compared to the previous year, selling for an average price of $412,227, according to Redfin. Mortgage rates also remain above pre-pandemic levels due to the Federal Reserve's campaign to combat inflation, leading to rates at a 23-year high of between 5.25% and 5.5%.

In the second major divide between Generation Z and the Baby Boomer generation, a larger number of Generation Z members reported owning cryptocurrency rather than stocks. Meanwhile, only 10% of Boomers (aged 59 to 77) stated that they own cryptocurrency, while 27% own stocks.

However, it's not due to a lack of desire. Almost two-thirds of Generation Z and millennials believe that the stock market is a great place to build wealth and invest. But many simply don't have enough savings or disposable income to invest.

A study by the Federal Reserve Bank of Richmond found that as people age, they tend to invest more and more money in the stock market. However, with alternatives like cryptocurrencies and non-fungible tokens, it can also be assumed that younger generations will turn to other investment methods as they grow older.