The trends: Young people still can’t afford to buy their first homes and are turning to investing to build wealth, per the Financial Brand.
How we got here: While homeownership used to be a key component of achieving financial independence and success, rising housing prices and persistently high mortgage rates have helped to push the average age of first-time homebuyers to a record high of 38—up three years from July 2023, per CNBC.
At the same time, financial institutions (FIs) and fintechs have lowered the barriers to investing—allowing Gen Zers and millennials to partake.
The strategies: By making investing more accessible, banks are attempting to build relationships with young customers. For example:
Our take: Inflation, unachievable housing goals, growing debt, and a volatile economy have pushed young banking customers to look outside the box to build their futures. To capitalize on this shift while helping these customers financially succeed, FIs should prioritize accessible, low-cost investment opportunities and integrate financial education into their offerings.
Dig deeper: To learn more about what investment options Gen Zers and millennials want most, read our article “Young investors want alternative products from their financial service providers.”
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