Gen Z are investing in the stock market because they can’t afford homes

Just because many members of Gen Z can't afford homes doesn't mean they aren't investing in their futures.

More and more people under 40 are choosing to invest in stocks rather than property, according to new data from the JPMorgan Chase Institute. The share of people 25 to 39-years-old — older Gen Z and Millennials — making at least yearly transfers into their investment accounts more than tripled between 2013 and 2023 to 14.4 percent, according to the data.

Researchers also found that the number of 26-year-olds who moved their money into investment accounts since they turned 22 has increased from 8 percent in 2015 to 40 percent in May 2025. Neither figure includes individuals who are only transferring money into their 401(k)s.

George Eckerd, the research director at the JPMorgan Chase Institute, told the Wall Street Journal that the data shows "surprisingly strong growth in retail investing in recent years among people who may otherwise be first-time home buyers."

He told the paper he believes that the stock market's recent high performance, combined with digital tools that make trading more accessible, is contributing to the trend of young people dabbling on Wall Street.

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Laura Wight, 33, who was saving for a Chicago-area condo, found that the cost of the down payment she'd need was ballooning faster than she could save, according to the WSJ. So rather than constantly chasing the down payment, she opted to put $10,000 she'd saved up into index funds instead.

Wight made her investment almost six years ago and has seen a 66 percent return. She told the paper that seeing her investments grow and knowing she has the flexibility to liquidate some for emergencies — like $2,100 she needed for dental surgery and vet care for her dog — has made her question whether or not she's going to prioritize homeownership in the future at all.

“I can just keep renting and having more flexibility with my money,” she told the WSJ.

Helen Bovington, 23, shared similar sentiments. She said that even though she knows the market can be volatile, she still feels "like my money is safer in the stock market than in a house."

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She has saved approximately $30,000 after spending six years investing in a fund that does not include fossil fuel companies.

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Many adults under 40 have been priced out of the home market. The median home price in 2025 was between $410,000 and $426,000, according to FRED data, while the median U.S. salary in 2025, according to the Bureau of Labor Statistics, was $62,088.

Not only are homes expensive, but mortgage rates have kept many younger buyers locked out of financing. Over the summer the 30-year fixed mortgage rates hung at 6.6 percent, putting monthly payments outside the range of many adults in the early years of their careers.

Student loan concerns factor, too. While paying down student loans has long contributed to younger adults putting off big purchases like cars and homes, President Donald Trump’s One Big Beautiful Bill Act ends long-running income-based repayment plans and may pressure younger adults to hold off on home down payments.