Young Americans who can’t afford homes are now investing in a surprisingly risky alternative
These young Americans are often condemned for their trading habits, but there is logic to it.
Dec. 1 2025, Published 8:10 a.m. ET
Buying a home is something that was considered normal for previous generations in America, but that dream has become out of reach for most young people today. It does make sense to invest money elsewhere if real estate is too expensive, but putting money into risky assets is more likely to backfire. The recent crash shows that cryptocurrencies are high-risk assets to invest in, but young Americans who are unable to afford a house are betting on crypto.
A report in the Financial Times shows that the deteriorating affordability of homes has forced young people to take larger risks. The simple way to describe it is that Gen-Z knows that they’re never going to own a house with the rising prices by playing it safe. Crypto offers them an opportunity to earn big. And while it may involve a massive element of risk, these young people are ambitious enough to go for it anyway.
This is proven by a study published by economists at the University of Chicago and Northwestern University, which uses transactional attitudes of young Americans as data. Economists Seung Hyeong Lee and Younggeun Yoo’s findings show that for those for whom house ownership is a realistic possibility in the future, taking that kind of risk is rare. These people usually strive to do better at work and are content with their financial situation.
However, that is not the case with most young Americans. Those who believe that they would otherwise never be able to own a house see no choice but cryptocurrency. As per economic commentator Demetri Kofinas, this is known as ‘financial nihilism.’ “Well, I define financial nihilism or market nihilism as an investment philosophy that views the objects of speculation as though they were intrinsically worthless. And that's different than saying that perception is important or that perception drives value, but that there ultimately is some underlying value that has to align with perception over time,” he had said as per Barron’s.
The attitude of Gen Z in the workplace is also seen as a reaction to the current state of the economy that they inherited from older generations, for whom the American dream was attainable.
Owning a house is a dream for most people, and it is becoming increasingly tougher to realise that dream. Therefore, slogging away at work towards a dream that you’re never going to achieve simply seems pointless. Taking risks in crypto often seems like a quick and easy way to earn a lot of money, and worth it.
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