How Generation Z Can Invest in Real Estate Early

There is a widespread misconception that only the super-rich have the option of investing in real estate. Many people incorrectly assume that to be a real estate investor, you need to be advanced in age and have a large amount of liquid assets on hand. However, Generation Z, the youngest generation at the time may have the option to dip their toe into the pool of real estate investing. Due to current economic trends and the age of people who fall under the “Generation Z” heading, there is a new wave of real estate investors.

Who is Generation Z?

Generation Z is made up of people who were born between 1997 and 2012. In some instances, Generation Z is extended to 2013-2015. Generally speaking, people who range in age between 6 and 24 years of age are considered to be a part of Generation Z. If you’re not familiar with the term, you may have also heard this demographic referred to as the “iGeneration” and “Post Millennials.” Call them what you want, but it’s worth noting that there are currently roughly 68 million Americans who fall within those parameters. Based on numbers alone, it’s safe to assume that members of Generation Z will soon make up an ample percentage of real estate investors in the US.

The Role of Technology

It’s no secret that technology is playing a more instrumental role in virtually every industry and that real estate is no exception to the rule. Thanks to advances in modern technology, all sorts of investments can be made from your phone. It’s also possible to go through most of a real estate transaction from a phone or tablet. That certainly benefits members of Generation Z, as studies indicate that most of them have had their own cell phone since they were only 10 years old.

While this familiarity with technology may not equate to the money needed to become real estate investors, it does put Generation Z members in a better position to understand how to use technology to manage all of their finances.

They’re More Knowledgeable Than You Think

Many people view younger generations as irresponsible, careless and otherwise unable to make it on their own. It turns out that members of Generation Z may be more fiscally cautious as well as knowledgeable than their older counterparts. A recent study conducted by CreditDonkey surveyed 1,000 retail investors and found a large portion of Generation Z members consider themselves knowledgeable about investing. 53% of them say that they are confident in their understanding of how to invest. By comparison, only 44% of Baby Boomers consider themselves knowledgeable about investments.

And 57% of Generation Z adults started investing between the ages of 18 and 24 while only 14% of millennials say that they made their first investment before the age of 25. The numbers indicate that this youngest generation is actively engaged in learning how to manage their money and are willing to invest it when a good opportunity presents itself.

Age and Wealth Matter

There are logistical reasons for Generation Z adults to be more aggressive investors than their older counterparts in regard to investing. Thanks to their age, Generation Z has more time to rebuild their personal wealth in the event that an investment doesn’t work out. Generation Z also has a better chance at amassing future wealth. Members of this generation came of age during the Great Recession which decimated the real estate market. Generation Z was actually in a great position to take advantage of a booming economy until the Covid-19 affected the economy.

However, due to their entry into adulthood coming so recently, Generation Z adults are in a better position than millennials in regard to owning their own home. According to some studies, nearly 70% of millennials say that they cannot afford their own home. Somewhere between 30% and 35% of millennials say that they do not have access to the amount of wealth that they initially predicted. Generation Z is in a great position to experience success in the world of real estate investing.

Generation Z was more impacted by the Covid-19 pandemic than some other generations, but the fact remains that their youth puts them in a position to rebound and create long-term success, potentially through real estate investing.

Since these young adults are more informed than ever about investing and appear to be more cautious than the generations before them, it appears that Gen Z may be in a position to revolutionize the real estate investing industry.

Adam Luehrs

Adam Luehrs is a writer during the day and a voracious reader at night. He focuses mostly on finance writing and has a passion for real estate, credit card deals, and investing.

SW Manager, LLC (“Manager”) is a wholly-owned subsidiary of and controlled by Tryperion Holdings, LLC (our “Sponsor”). Manager is the external manager and advisor of 1st Streit Office Inc. (“1st Streit Office”) and 1st Streit Office Operating Partnership LP (our “Operating Partnership” and, together with 1st Streit Office, “Our Current Offering”). 1st Streit Office is the sole general partner of our Operating Partnership, through which all of our assets will be owned and substantially all of our operations will be conducted. All references herein to “Streitwise” refer, as applicable, to Manager, 1st Streit Office, the Operating Partnership, or any of their affiliates (collectively, the “Streitwise Entities”). Unless explicitly stated to the contrary, all references to “we,” “us,” and/or “our” shall refer to the Streitwise Entities. By using Streitwise, you accept our Terms of Service and Privacy Policy.

An offering statement regarding this offering has been filed with the SEC. This offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBS Act. The SEC has qualified that offering statement which only means that Streitwise may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You should read the Offering Circular before making any investment which is available here: streitwise.com/oc

You may have been referred to Streitwise by a third-party (“Solicitor”). Compensation to any Solicitor may be up to $200 per email registration. A Solicitor may promote and/or may advertise Streitwise’s investment services and may offer independent analysis and reviews of Streitwise’s services. Streitwise and any Solicitor are not under common ownership or otherwise related entities. We cannot ensure the accuracy of the data provided from any Solicitor.

Performance: Past performance is not a guarantee of future results. All historical returns, target returns, or hypothetical projections may not reflect actual future performance.
Risk: This investment involves a certain level of risk and may result in partial or total loss. We cannot guarantee that we will reach our target return for our investors.
Tax: Prospective investors should confer with their tax advisors regarding the tax consequences based on their particular circumstances. Neither Streitwise nor any Solicitor assumes responsibility for the tax consequences for any investor.
Liquidity: Investments in private placements are highly illiquid and those investors who cannot hold an investment for the long term should not invest. See Stockholder Redemption Plan in the OC.

¹ Dividends & returns: Current annualized dividend based on the most recent dividend declaration as of the quarter ending 3/31/2024. Dividend return calculations based on NAV at the time of dividend return. 1Q24 dividend payout of $0.11/share equates to a 6.2% dividend based on the current NAV. The REIT has averaged a 7.2% annualized return since 2020 and a 8.3% annualized return since 2017 based on the average NAV for the respective periods. See Quarterly Report for all returns history.
² Source: FTSE NAREIT All Equity REITs vs S&P 500.
³Sponsor Performance: Related to investments by Sponsor, Tryperion Holdings, as part of one of its prior programs, and not of any of the Streitwise Entities. Reflects gross IRR on realized investments in the Sponsor’s investment portfolio since inception. Sponsor performance data as of 4Q23.
⁴Target returns: We will seek to invest in real properties and other real estate-related assets that we believe can produce a strong return through a combination of cash flow and appreciation. We cannot guarantee that we will reach this target return for our investors.

This page may contain forward-looking statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the Offering Circular. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

© 2024 Streitwise. All Rights Reserved. Apple, the Apple logo and iPhone are registered trademarks of Apple Inc. Streitwise is not affiliated with nor related to NAREIT or its annual REITwise conference.