Crypto as a Wealth Building Tool for Young Americans

Amid rising home prices and high borrowing costs, young Americans are increasingly considering cryptocurrencies for wealth building instead of real estate. The choice between volatile crypto markets and sacrificing for property ownership presents a dilemma unique to this generation.

Generational Differences

Younger Americans are facing financial situations that differ from their parents. Previous generations, such as baby boomers and Gen Xers, didn’t ask themselves whether to invest in a home or cryptocurrency.

“Zoomers and millennials see Bitcoin and cryptocurrency as safe-haven investments they can afford now,” said Yaël Ossowski, deputy director at Consumer Choice Center.

Ossowski points out that while home prices have increased 130 percent over three decades, Bitcoin offers a buy-in option that young people can afford. It is an asset in $20 increments, without the risk of debasing by government agencies.

Crypto vs. Real Estate: Considerations

Real estate remains a stable investment with considerable long-term rewards. According to the National Association of Realtors (NAR), homeowners gained equity equivalent to three years of income in the past decade. Homeownership enriches net worth despite current market sluggishness.

Older generations made the most gains. Baby boomers and Gen Xers dominate as both homeowners and buyers. In 2026, they sustain the largest share of homebuyers at 42 percent, compared to millennials at 26 percent and Gen Zers at 4 percent, as per NAR’s 2026 Home Buyers and Sellers Generational Trends report.

Challenges to Homeownership

Younger generations missed out on past gains from home value increases. A study by Realtor.com indicates that buying a home at 30 results in 22.5 percent greater net worth at 50 compared to purchases in one’s mid-to-late 40s.

The median first-time homebuyer age increased from 30 in 1990 to 40 in 2025, reflecting delayed homeownership. Rapid housing costs threaten many owners, with some struggling to fulfill payments and facing foreclosure risks. According to ATTOM data, 118,727 homes saw foreclosure filings between January and March, equal to one in every 1,211 housing units nationwide.

Ossowski cautions against unforeseen lifelong homeownership costs, including taxes, maintenance, insurance, and transaction costs. The fixed nature of owning a house contradicts young people’s flexibility desires.

The Role of Cryptocurrencies

Cryptocurrencies provide liquidity, portability, and global accessibility. Despite volatility warnings, data from Security.org reveals over 70 million U.S. adults—30 percent—including one in three age 30-44, own crypto.

Ossowski argues Bitcoin offers a savings vehicle resistant to inflation, though emphasizing that investment risk remains high. Bitcoin reached $124,000 in October, but fell to about $66,000, marking a 47 percent drop.

Crypto-backed Mortgages

Using crypto assets to achieve homeownership offers promising pathways. Fannie Mae now accepts crypto-backed mortgage products, allowing digital assets as down payment collateral. This development widens access for crypto holders to become homeowners.

Redfin’s study in May 2025 found that 12.7 percent of young buyers, including Gen Zers and millennials, used cryptocurrency for down payments.

“If I had to pick one as a pure investment, I would take Bitcoin over a house. But ‘pure investment’ is not why most buy homes,” said Ossowski. He observes young Americans choosing Bitcoin not over homes, but because homes are largely inaccessible due to poor policies and inflation.