April 17, 2019
Why Gen-X is Reluctant to Invest in Real Estate
With all of the media attention paid to the Millennial and Boomer generations these days, one could be forgiven for forgetting about the generation that got all the attention in the 1990’s: Gen X. But they’re still out there, and where real estate is concerned, they (particularly those on the younger end of the Gen X grouping) are proving reluctant on the uptake in investing in Real Estate, especially when compared to their forebears. Perhaps more than coincidentally, this also seems to apply to older Millennials.
According to a survey performed early this year by Redfin, this set of potential homebuyers—who presently fall between the ages of 38-42 years old—considers the stock market to be a better bet for their investment dollars than real estate is. They are the only group surveyed who appeared to hold this belief—and the difference was stark. The 35-44 age group poll revealed that only 48 percent of those surveyed considered real estate a better long-term investment than the stock market—such that the stock market’s share came in at 52 percent. Every other age group considered real estate investment to be the superior long-term risk. The next group in line was the over-66 year old set, who favor real estate over the stock market by a ratio of 56 percent to 44 percent. 25-34 year olds favor real estate, 57 to 43 percent. Those younger than 25 favor real estate 59 percent to 41 percent. 45-54 year olds like real estate, 60 percent to 40 percent. And the 55-64 year old set favors real estate by the largest margin: 62 percent, compared to just 38 percent who favor the stock market.
Why the difference among the younger Boomers and older Millennials? Just as one might suspect, it all comes down to the housing crisis of 2008 and the so-called Great Recession that followed. This group was hitting prime first home-buying median age, falling in their late 20’s and early 30’s, right when the crisis kicked into gear. It was their first experience with the housing market, and there’s a lot of truth to the old saying: you never get a second chance to make a good first impression.
But things have changed, and those among this set that give the market a chance will find that it pays off, and is in fact much more secure than the stock market over time. Moreover, the title insurance policies we connect you with here at Topouzis & Associates, P.C., provide peace of mind that new property purchases will not bring along any nasty surprises. Whether you intend to invest in Providence, Rhode Island; Cambridge, Massachusetts; or Boca Raton, Florida, feel free to contact us for more information.