Generation Z is the first generation to grow up entirely with high technology. This inevitably affects the way of thinking, the way of earning money, the way of investing. If previous generations before them considered investing in housing to be safe, taking out 25-30-year mortgages in order to ensure a more peaceful old age, having their own home, then Generation Z has set a new trend that can turn the real estate market upside down and make it much more unpredictable.
For Generation Z, the efforts they have to put in to invest in housing are many, complex and time-consuming. Today, those born at the end of the last and the beginning of this century prefer to open another stock trading platform on their phone and literally in seconds buy a share of Apple, Microsoft or Nvidia shares through the S&P 500 index fund.
The latest data from Global Retail Investor Outlook shows that nearly 30% of Generation Z members invest in stocks while they are still students. This effectively reduces the chance of investing in housing at a later stage, since they have already chosen to invest their money in stocks. For comparison, only 6% of Baby Boomers (ed. note: their grandparents) have considered investing in stocks. Analysts conclude that today's young people are much more proactive.
Another reason why Generation Z representatives prefer stocks to housing is their desire to secure a stable income at the youngest possible age. The idea of retiring at 40 years old against the background of a 30-year mortgage loan is absurd, but the same idea when investing in stocks is completely realistic.
By purchasing stocks, not housing, Generation Z representatives want to take their income into their own hands at retirement age, and not rely on the state, as is the case with representatives of the two generations before them.
A similar trend is observed in Bulgaria, although at a fairly early stage. Bulgarian youth are attracted by dozens of fintech platforms that provide access to Wall Street and by the fact that they can invest with 50 or 100 EUR of their monthly budget and invest them directly in the TOP 500 of the American economy.
Detailed statistics on average property prices in Bulgaria by cities and neighborhoods can be seen at imot.bg