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As Gen Z comes of age, they’ve made a name for themselves by questioning the legacy systems previous generations have accepted as the norm.
But, Zoomers do more than cast shade at their predecessors. They demand better. If something is broken, they will push to fix it.
Their influence is causing seismic shifts across industries from luxury retail to transportation. And with Gen Z’s purchasing power expected to grow to $33 trillion over the next decade, it’s no wonder marketing, political and entertainment sectors alike are paying attention to them.
Now Gen Zers are shifting their focus to industries that have locked them out, like real estate investing.
In the United States, commercial real estate is rebounding quickly to pre-pandemic levels. Meanwhile, commercial real estate in Canada is on track to post a record of nearly $50 billion in investments this year. But while Zoomers want to own a home, like the millennials before them, the cost of entry is too high. The average price of a home in the U.S. soared by an unprecedented 24%.
Here’s how Gen Z is finding a way in and revolutionizing real-estate investing in the process.
Related: 10 Pieces of Financial Advice I Wish I Knew in My 20s
They’re redefining home ownership
Zoomers have watched millennials struggle with a wage gap that’s made home buying in its traditional sense, unattainable. Compared to Baby Boomers at the same age, millennials own eight times less American real estate and spend 39% more on a first home. Faced with the same challenges, Gen Z is marking their fate by redefining what homeownership means.
Instead of purchasing a home to live in, they’re leveraging crowdfunding and the sharing economy to take ownership in houses, buildings and even commercial properties for as little as $1. Simply put, they’ve realized being a homeowner doesn’t mean they have to live where they’ve invested. In fact, there are advantages to not going all-in on one property.
In traditional homeownership, the process is stressful, drawn-out and brings heaps of responsibilities like mortgage payments, property tax, maintenance and insurance.
By not living where they invest, Gen Z is realizing the benefits of a lucrative long-term investment without giving up the freedoms they enjoy now: tickets to an unforgettable concert, a closet full of luxe yet sustainable fashion, dinners out, travel and the latest gaming system. They get the capital appreciation while someone else deals with landlord responsibilities.
Related: This Multimillionaire Millennial Shares the Top 3 Business Mistakes His Generation Makes
They’re prioritizing transparency and community
Realizing real-estate investing is no longer reserved for the wealthy elite, Zoomers are bringing the market out from behind locked doors and into the community.
The pandemic helped spark new …….