About one-third of 25-year-olds now have investment accounts—a sixfold increase since 2015
More young people, particularly Gen Z, are investing in the stock market, reports Axios.
A new study from the JPMorganChase Institute shows about one-third of 25-year-olds now have investment accounts—a sixfold increase since 2015.
The investing trend comes as homeownership, a common wealth-building strategy, is declining among young adults. Record-high prices and mortgage rates are deterring them, and they are looking at stock markets as an alternative path to accumulate wealth.
According to the research,
- Men remain more active investors than women, with the gap widening slightly after late-2024 political events.
- People with below-median incomes are five times more likely to invest than they were a decade ago.
Researchers have noted that free time and stimulus checks increased investment activity during the pandemic, while user-friendly trading apps made it more accessible and “gamified.”
Additionally, record highs in stocks and crypto drew in new retail investors.
However, younger and lower-income investors tend to buy based on price swings (at highs or dips) rather than steady strategies, which researchers warn may not be financially healthy.
If retail investing continues to expand, Wall Street may witness small investors shaping market behavior.