This is how people are building generational wealth today: poll – New York Post

Six out of 10 US adults believe they can build generational wealth, but have differing opinions on how to do so.

Of the 2,000 adults polled, 74% believe they have already built up the finances to pass on to their descendants, according to a new survey conducted by OnePoll, on behalf of the real estate listings platform HomeLight.

Just over a quarter of respondents who are homeowners (26%) said they build wealth by making improvements to their property to increase its value.

By comparison, 38% of those who dont own a home and currently live in student housing are turning to extreme savings and investment programs like Financial Independence, Retire Early (FIRE), or subletting part of their primary residence (38%).

Despite changes in the market, homeownership continues to be one of the most surefire ways to build generational wealth in the U.S. Home equity surged to arecord $27.8 trillionin Q1, but rising interest rates and costs of living have started to curb demand for home buying, said Vanessa Famulener, the president of real estate listings platform HomeLight Homes, who commissioned the poll. Those who have built up equity in their homes can take advantage of numerous tax, repayment, and interest rate benefits that home equity lending offers homeowners especially to help bring costs down for value-add home improvements.

Despite the fact that aging Millennials are still struggling to achieve homeownership much more than the Baby Boomers and Gen Xers before them 60% of the middling generation claims they are confident that they understand the current housing market, whereas less than half of Boomers (49%) say theyve got a grasp on the industry.

But participants also know that owning a home isnt the only avenue to success.

People who live with their parents or family and dont pay rent (83%), and renters (75%), feel they have already built generational wealth compared to homeowners (72%).

In short, those who are lucky to have finically helpful family members are already on their way to accruing wealth. In fact, 77% of people currently living with family plan to inherit a home, including 64% of Millennials.

Compared to current homeowners, people who live with their folks and dont pay rent also have a better shot at wealth (46% vs. 33%) and borrow money from family or friends to afford their own home (42% vs. 28%).

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This is how people are building generational wealth today: poll - New York Post