Young People Turn to Crypto as a Last-Ditch Effort to Secure Homeownership
A recent study reveals that millennials are increasingly resorting to cryptocurrency investments as a desperate strategy to achieve homeownership. Individuals born in the 1990s are finding it significantly harder to own a home compared to their parents. Specifically, renters with a net worth under $300,000 display a greater inclination to invest in crypto. The research, released on November 19, indicates that the soaring median house price relative to income in the U.S. over the past few decades has exacerbated the housing crisis, leading young individuals to explore alternative avenues for financing their dream of owning a home. Researchers Seung Hyeong Lee and Younggeun Yoo assert that when the chances of purchasing a home diminish, households tend to gravitate towards high-risk investments with potentially substantial returns—making crypto an appealing option. According to the study, many young people are abandoning the idea of homeownership altogether.
Trends Among ‘Discouraged Renters’
The study sheds light on a significant psychological turning point for renters. Once they perceive homeownership as unattainable, their behavior shifts dramatically and becomes entrenched. For example, discouraged renters are likely to increase their credit card spending by about 10% compared to homeowners with a similar financial standing. They are also nearly twice as likely to dismiss the importance of hard work, a phenomenon commonly referred to as “quiet quitting” in today’s workforce. Moreover, renters with a net worth below $300,000 demonstrate a notably higher engagement in crypto investments relative to their homeowner counterparts. This trend is most evident among those with assets ranging from $50,000 to $300,000—wealthy enough to avoid a safety-net mentality but still too poor to purchase a home. Once renters’ net worth dips below $50,000, they typically cease investing altogether—not due to a lack of desire but rather a shortage of financial resources.
Crypto as a Gamble for Hope
Lee and Yoo characterize participation in the cryptocurrency market as a “last resort” strategy—a high-stakes effort to bridge the gap that traditional saving methods cannot close. The researchers note that crypto has become a replacement for the American Dream, as young people shift from a mindset focused on saving for a home to one centered around making significant bets in hopes of bypassing the conventional system. This shift in thinking, while understandable, is rather disheartening. Discouraged renters feel secure taking risks like investing in crypto, knowing that the safety net provided by minimum-consumption welfare programs limits their worst-case scenarios. Over time, the consequences of these choices can become pronounced, leading to stark financial disparities. Two renters starting out with similar assets may diverge significantly as time passes; discouraged renters often find themselves trapped in a cycle of negligible wealth, while those who remain hopeful manage to build their financial standing. The study projects that the homeownership rate for those born in the 1990s will be 9.6 percentage points lower than that of their parents upon retirement.
A Global Challenge
The challenges surrounding housing affordability are not limited to young Americans; similar trends are observable in other countries. In South Korea, many young individuals identify as part of the “Sampo generation,” which signifies their abandonment of three key life goals: dating, marriage, and childbirth, all attributed to soaring housing costs. Likewise, Japan’s youth are adopting the concept of “Satori,” reflecting a state of enlightenment or detachment from material aspirations due to the belief that homeownership and career fulfillment are out of reach. Consequently, both nations are witnessing a surge in cryptocurrency interest, with South Korea ranking 15th and Japan 19th in Chainalysis’ 2025 Crypto Adoption Index.
