A recent study by Bank of America Private Bank sheds light on the evolving real estate investment preferences among high-net-worth individuals. One of the key findings is the growing generational divide in how wealth is managed and invested, particularly in real estate.

Younger generations, such as Millennials and Gen Z, are turning to real estate as a primary investment avenue, with 31% viewing it as the best opportunity for growth. This contrasts with older investors, who still lean towards more traditional assets like U.S. stocks, though real estate remains a strong component of their portfolios.

Despite the differences in investment strategy, real estate continues to be viewed as a “safe bet” across generations. As younger investors gain more influence, their preference for tangible assets like property—combined with interest in alternative investments such as private equity and digital assets—is reshaping the wealth landscape.

With a massive generational wealth transfer underway, real estate is expected to see continued demand. The study highlights how this transfer could influence real estate trends, particularly as younger generations seek to diversify their holdings.

For a more in-depth look at these trends, you can access the full 2024 Study of Wealthy Americans.