WASHINGTON, Feb. 2, 2022 /PRNewswire/ — 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.
Over 70% of 18-40 year old investors worried about inflation; 74% looking into more real estate allocations in 2022
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.”
Additional findings from Fundrise’s investor survey – including a focus on forward looking 2022 concerns, stability of markets, and how investors are seeking information – are summarized below:
- Nearly 70% of surveyed investors rate inflation as their top concern for financial markets.
- The potential of another Covid-19 shutdown (65%), global market uncertainty (64%) and issues springing from the supply chain (65%) were listed as the next top three concerns going forward.
Crypto increasingly seen as a safe investment
- Cryptocurrency is viewed as the most stable investment option by these investors
- Nearly one-quarter of investors surveyed say cryptocurrency is a safe and stable …….