For much of the postwar era, Americans bought a starter home and watched it become an investment. Decades later, fulfilling the typical American Dream of a home with white picket fence dotting the front lawn has become all but unattainable, as home prices have soared 235% since January 2000. As a result, many young people are going all in on the stock market, viewing their brokerage accounts as the new American Dream.
“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, the head of economics research at Redfin, told Fortune.
Zhao’s not wrong: less than half of Gen Z and Millennials can afford to buy a home, and the age of the average first-time homebuyer has jumped from 28 in 1992 to 40 in 2025. Despite this, it’s still seen as a good investment: more than two-thirds of Americans say buying a home is still an important asset that holds value. But as homeownership becomes a fleeting concept for younger generations as home costs continue skyrocketing roughly 50% in recent years, young adults are treating their down payments as the new starter asset as they amass a record high $3.1 trillion in holdings, up 4.5 times since the pandemic alone.
