Hampered by student loan debt and escalating home prices, millennials prefer stowing away money in savings accounts and certificates of deposit over real estate or stock investments, according to a new survey published Wednesday.

Savings accounts and other cash instruments were viewed as the most viable investment strategy by 30 percent of millennials between the ages of 18 and 37, a stark departure from older generations of Americans who preferred the stock market and real estate, according to a survey of 1,000 respondents by Bankrate.com, a New York-based consumer financial services company.

Only 21 percent of millennials viewed real estate as an ideal investment.

“For investment horizons of longer than 10 years, the stock market is an entirely appropriate investment,” Bankrate Financial Analyst Greg McBride said. “Cash is not, and especially if you’re not seeking out the most competitive returns.”

Among respondents of all ages, 32 percent viewed the stock market as the best investment, while only 24 percent chose cash instruments such as a savings account as the most lucrative option. Real estate clocked in at third, with just 22 percent of respondents describing it as an ideal investment.

Gold and other precious metals tallied 9 percent, bonds scored 8 percent and cryptocurrency 2 percent, according to results of the survey, done annually in collaboration with GfK Custom Research North America.

Courtesy of Bankrate.com

Between 2014 and 2017, real estate had been the first investment choice among Americans of all age groups in previous Bankrate.com surveys. With slumping home sales, rising prices and low inventory, however, fewer people say they have the cash on hand to invest in real estate.

While stocks came up as a clear favorite among Generation X, Baby Boomer and Silent Generation respondents, cash was favored by millennials for the first time in the six-year history of the Bankrate.com survey.

The predilection for cash, according to the report, could be prompted by millennials’ fear of risk when many are already struggling with student loans debt and the high costs of housing.

“Given that anxiety, millennials may say they prefer cash because it’s hard to imagine owning funds you won’t need in a decade,” writes Taylor Tepper, the author of a report tied to the new survey.

Email Veronika Bondarenko

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×