Gen Z And Millennials Are Betting On Stocks As Homeownership Slips Away

Americans younger than 40 now hold a record $3.09 trillion in stocks.

Americans younger than 40 now hold a record $3.09 trillion in stocks as soaring home prices push more Gen Z and millennial investors to view brokerage accounts and stocks as a stepping stone to wealth, while homeownership becomes increasingly difficult to achieve, Fortune reports.

Federal Reserve data shows equities now account for 27% of the net worth of households under 40, the highest share since the central bank began tracking the data in 1989. The shift reflects growing housing affordability challenges that are forcing many younger Americans to rethink how they build long-term wealth.

Home prices have climbed roughly 235% since January 2000, according to the outlet, while fewer than half of Gen Z and millennial households can afford to purchase a home. The median age of a first-time homebuyer also increased from 28 in 1992 to 40 in 2025.

“For younger adults who despair about ever being able to buy a home, investing in financial markets can be a great way to save until they can afford one,” Chen Zhao, Redfin’s head of economics research, told the outlet.

The financial pressures are already reshaping behavior. Northwestern Mutual’s 2026 Planning & Progress Study found that 31% of Gen Z adults have delayed buying a home because of financial constraints, while 34% worry homeownership isn’t a reality for them. More than half of millennials also report having to choose between saving for retirement and purchasing a home.

George Eckerd, research director for wealth and markets at the JPMorganChase Institute, told Fortune that rising stock ownership represents a significant shift in how younger Americans are accumulating wealth. A 2025 Redfin survey found 1 in 5 Gen Z and millennial homebuyers sold stock investments to help finance a down payment, roughly double the share of baby boomers.

Financial advisers caution, however, that equities should complement—not replace—a long-term financial plan. Douglas Boneparth, president of Bone Fide Wealth, warned that some younger investors frustrated by the housing market may pursue higher-risk investments, including meme stocks, cryptocurrency, and leveraged trades, instead of diversified portfolios.

The trend also highlights persistent wealth disparities. Eckerd’s research found that lower-income households and Black communities often enter both the housing and stock markets later in economic cycles, limiting their ability to benefit from long-term asset appreciation even as investing becomes more accessible through digital platforms.