Inflation spurs need for stability and young investors bet on alternative investments, new survey finds

WASHINGTON, February 2, 2022 /PRNewswire/ — According to the findings of a new survey released today by Fund raising. Over 50% of respondents said they planned to increase their allocation to alternative investments, with 74% of 18-40 year olds surveyed planning to invest or explore investing in real estate through investment platforms online in 2022.
Fundrise, the nation’s largest direct-to-investor real estate investment platform, partnered with DKC Analytics to survey 1,000 millennial (25-40) and Gen Z (18-24) investors in late December. ) to gauge investor sentiment and outlook for 2022. For nearly 70% of these young investors, inflation is a top financial concern. And in their search for coverage, the survey found that 77% are currently investing in the stock market through online platforms or apps, and 66% of respondents are actively investing in alternative platforms, including real estate, venture capital and cryptocurrency.
Inflation has been rising at its fastest pace since 1982, which is reason enough to worry some investors. In December, the consumer price index rose by 7%, and this is the third month in a row that inflation has exceeded 6%, according to recent findings from the US Bureau of Labor Statistics.
“Real estate has always been one of the most attractive asset classes for professional investors, but doubly so in times of inflation,” said the co-founder and CEO of Fundrise. Ben Miller. “What’s extraordinary this time around is that millions of millennial and Gen Z investors are using technology platforms like Fundrise to lead the push into the market’s hottest alternative assets ( like single-family housing), diversifying beyond stocks and bonds to an extent that was impossible for previous generations. It’s hard to overstate how much of an impact this could have decades from now.”
Additional findings from Fundrise’s investor survey – including a focus on forward-looking concerns for 2022, market stability and how investors seek information – are summarized below:
Concerns 2022
- Nearly 70% of investors surveyed consider inflation to be their main financial market concern.
- The potential for another Covid-19 shutdown (65%), global market uncertainty (64%) and issues arising from the supply chain (65%) were listed as the next top three concerns to the future.
Stability
Crypto increasingly seen as a safe investment
- Cryptocurrency is considered the most stable investment option by these investors
- Nearly a quarter of investors surveyed say cryptocurrency is a safe and stable bet for their money, which was the most popular response among participants.
- Real estate funds, mutual funds, 401k and fixed income securities were all given the same weight (11%) as stable investment options by participants surveyed.
Investment learning
There is a thirst for knowledge among the investors surveyed.
- About 95% would like to know more about at least one important type of investment vehicle and have already taken steps to do so.
- Nearly 40% say they would like to know more about real estate investment funds, mutual funds, NFTs and other investment options.
- About half said they learned about investing strategy from talking to friends and family (49%) or discovered the markets through their own online research (51%).
- Almost 42% have even ventured to take online courses, and 40% have played the stock market game to improve their skills.
About the survey
This survey was conducted online in United States by DKC Analytics on behalf of Fundrise of December 17 to December 20, 2021, among 1,000 respondents representative of a sample of Gen Z (30% / 18-24) and Gen Y (70% / 25-40) investors. The results are weighted to be representative of this population, which was randomly found by scientific sampling. This online survey is not based on a random sample and therefore no estimate of theoretical sampling error can be calculated. The margin of error is 3.1%.
About Fundrise
Fundrise is America’s largest direct-to-investor real estate investment platform. Since 2012, our mission has been to use technology to build a better financial system for the individual. We’re making it easier and more efficient than ever for anyone to invest in institutional-grade private real estate, all at the push of a button. To date, we have processed approximately $7 billion of real estate and currently manages approximately $2.4 billion in equity, on behalf of our more than 210,000 active investors and 1.2 million active users. You can learn more about the future of real estate investing at Fundrise.com.
SOURCE Fundraising