However you choose to define the Millennial Generation, it’s clear that coming of age during a time of economic crisis has had a profound influence on this generation’s willingness to take on significant financial risk. Nancy Behrman has noted that many young investors are eschewing the traditional means of investment, largely out of fear of the incredible market volatility they witnessed during the still-recent economic downturn.
While this risk-avoidance is still quite prominent, this generation has not given up on investing altogether and has instead adopted a shrewd approach focusing on real estate investing. New investors have been quite active in the real estate market and appear to be working diligently toward the creation of a strong property investment portfolio. It’s also become apparent that these investors have found ways around the lack of access to significant capital through the use of crowdfunding as well as countless other innovative investment strategies.
Property investing is certainly not without risk, and the economic crisis did have a significant impact on the real estate market. On balance, however, an investment in real estate is a much safer bet in the eyes of Millennials when compared to the alternative options available to them, which include many of the more traditional options such as stocks.