B
enzinga and Yahoo Finance LLC may earn commission through links below. For many young adults, homeownership seems out of reach due to high prices and down payment requirements. However, new investment platforms are emerging, offering fractional ownership as a more accessible entry point.

    Arrived Home's Private Credit Fund has historically paid an 8.1% annualized dividend yield*, providing access to short-term loans backed by residential real estate with a $100 minimum. According to Cameron Wu, vice president of investments at Arrived, "Coming of age amid skyrocketing home prices and economic turbulence has given Gen Z financial whiplash." To address this issue, Arrived allows users born after 2000 to start investing with just $100.

    Other strategies Gen Z employs to lower the barrier to real estate investing include FHA loans requiring lower down payments and credit scores, government grants and programs for first-time buyers, and financial gifts from family members. Some are even considering using inheritance money or making compromises on factors like price, location, or size of the house. Many are willing to consider fixer-uppers or less safe neighborhoods in exchange for affordability.

    Gen Z is also targeting affordable markets such as Pittsburgh, St. Louis, Cleveland, and Detroit, where properties can be found under $165,000. Some are exploring alternative ownership structures like co-buying with friends or moving in with family to enter the housing market.