Industry News

Survey: Mass affluent investors have most real estate risk

Group has more exposure to real estate declines

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

As analysts ponder the real estate bubble's possible collapse, new data suggest that the mass affluent -- those with investable assets between $100,000 and $1 million -- are at significant risk. This large, mass affluent group has 37 percent of total assets tied up in real estate, with 23 percent in principal residences and 14 percent in investment real estate, according to a new report from Spectrem Group released today. This compares with a much lower total real estate exposure of 21 percent (13 percent principal residence, 8 percent investment real estate) for those with investable assets of $1 million or more. Real estate is the largest asset class for mass affluent households. Their exposure in principal residences alone is larger than the next biggest class, investable assets (22 percent), which include managed accounts, stocks and bonds, IRAs, deposits, mutual funds and alternative investments. "Mass affluent investors have heavily tied their financial futures to the real esta...