88% of Gen Z, Millennial investors plan to increase investment allocation to real estate

Summary

CNBC's Robert Frank reports on a Bank of America survey of young millionaires showing a shift toward alternative assets and away from traditional stocks and bonds. 88% of Gen Z and millennial millionaires plan to increase allocations to alts, with real estate being the favorite. Ultra-wealthy investors similarly rank real estate as the top opportunity among alternatives.

• Bank of America survey: 88% of Gen Z/millennial millionaires plan to increase alternative asset allocation in the coming years.
• Two-thirds of these young investors say traditional stocks and bonds can no longer deliver above-average returns.
• Real estate is the most popular alternative, with about half currently owning it and 40% planning to add more.
• For ultra-wealthy investors ($25M+), real estate also ranks highest among alternatives for opportunity, at 30%, ahead of private equity and even stocks.
• Forms of real estate owned include primary homes, REITs, rental properties, and commercial real estate.