Investing in real estate has, for the longest time, been a popular path for youthful investors. Not only do they get to own their home, but the property is seen as a substantial investment that will grow in value. However, the current housing market and the maturation of millennials has seen the new age of potential homeowners looking elsewhere in places such as Bitcoin.
The housing market is setting itself up to be challenging for first-time buyers to enter, and these same potential investors are also prioritizing other investments as a better bet for their money due to economic policies and regulations. One such asset that is piquing the interest of this new generation is the “digital gold,” Bitcoin.
A survey conducted by major Bank ING has shown that the change in saving priorities of the new potential first-time owners highlights the more significant homeownership challenge, with 70 percent of those surveyed saying it is harder than ever for first-time buyers to buy a home. [ING]
Bitcoin or Housing?
It is hardly surprising that people who are approaching the age where buying a house for the first time are skeptical of the housing market. 2008 and the financial recession that emerged from the housing crisis is fresh enough in this generation’s mind.
More so, the housing market has only become more expensive and inaccessible for a large swath of the global population, so much so that the drive to save towards a first-time house is no longer one of the top priorities.
The price of property continues to rise across most of the western world, and this rise is surpassing the pace of wages. Many are instead entering the property market later in life, but there are significant numbers who say they are reassessing how they prioritize their savings funds.
However, the priorities of where savings go for this housing market-excluded generation also vary from the traditional norms. Millennials are not that inclined to invest in gold, stocks, or other such assets, with Bitcoin being the new asset emerging that captures the attention.
Part of the reason why the current generation is skeptical of investing in the housing market is also related to the current economic state of the globe, with a recession looking more and more likely, as BeInCrypto has previously reported. As such, general savings are being made to look less attractive with threats of negative interest rates, and thus, many are looking towards Bitcoin.
A survey conducted by eToro found that 40% of Americans born between 1980-1994 would invest in cryptocurrencies during a recession. Bitcoin is being debated as a potential hedge against any upcoming global financial recession. Still, even if this does not come to pass, the general market trend is making it harder for this generation to rely on traditional investment strategies, which are, in turn, making Bitcoin far more attractive.