Gen Z Embraces Stock Market as Housing Becomes Unattainable
As homeownership slips further out of reach for younger generations, a significant shift is occurring in financial behaviour. New research from the JPMorgan Chase Institute indicates that individuals under 40 are increasingly channelling their savings into the stock market instead of property.
Surge in Young Investors Documented
The data reveals a dramatic increase in retail investing among younger demographics. The proportion of people aged 25 to 39 making at least annual transfers into investment accounts more than tripled, rising from a baseline in 2013 to 14.4 percent by 2023. This cohort encompasses older members of Generation Z and Millennials.
An even more striking trend is observed among 26-year-olds. The number who have moved money into investment accounts since turning 22 has skyrocketed from just 8 percent in 2015 to a substantial 40 percent by May 2025. It is important to note that these figures specifically exclude individuals who are solely contributing to retirement accounts like 401(k)s, highlighting a distinct move towards active personal investing.
Experts Point to Market Performance and Digital Access
George Eckerd, Research Director at the JPMorgan Chase Institute, provided analysis on this emerging pattern. He described the findings as showing "surprisingly strong growth in retail investing in recent years among people who may otherwise be first-time home buyers."
Eckerd attributes this behavioural shift to two primary factors. Firstly, the stock market's robust performance in recent years has presented an attractive alternative for growing wealth. Secondly, the proliferation of digital tools and trading applications has democratised access to financial markets, making investing far more accessible and intuitive for a tech-savvy generation.
Personal Stories Highlight the Pragmatic Shift
The Wall Street Journal highlighted several personal accounts that illustrate this national trend. Laura Wight, a 33-year-old from the Chicago area, had been diligently saving for a condo down payment. However, she found the required sum was inflating at a pace that outstripped her ability to save.
Faced with this reality, Wight made a decisive pivot nearly six years ago. She redirected $10,000 of her savings into index funds. This investment has since yielded an impressive 66 percent return. The growth of her portfolio, coupled with the liquidity it provides for emergencies—such as covering a $2,100 dental surgery and veterinary bill for her dog—has led her to reconsider the priority of homeownership altogether.
"I can just keep renting and having more flexibility with my money," Wight told the publication, encapsulating a sentiment growing among her peers.
Helen Bovington, a 23-year-old investor, echoes this pragmatic approach. Despite acknowledging the inherent volatility of the stock market, she expressed a firm belief that "my money is safer in the stock market than in a house." Bovington has successfully accumulated approximately $30,000 over six years by investing in a fund that consciously excludes fossil fuel companies, aligning her finances with her personal values.
This collective move signifies a fundamental re-evaluation of traditional financial milestones. For a generation confronted with soaring property prices and economic uncertainty, the stock market is becoming the new frontier for building security and future wealth.
