TechFlow news, November 28 — According to the UK's Financial Times, research by economists from the University of Chicago and Northwestern University in Illinois shows that young people who see no hope of buying homes are more inclined to invest in high-risk financial assets such as cryptocurrency.
Researchers Seung Hyeong Lee and Younggeun Yoo analyzed U.S. credit card transactions, wealth, and attitude data, finding that young adults with little realistic chance of home ownership stand out in reducing work effort, increasing leisure spending, and investing in risky assets including cryptocurrency. In contrast, those who expect to achieve homeownership within a medium-term horizon or already own homes take fewer risks and work harder.
The study also found that as housing affordability worsens, individuals who perceive themselves locked out of homeownership adopt a mix of high-risk bets and "financial nihilism."
