R
eal estate investing, a long-standing cornerstone of wealth-building, is undergoing significant changes. The traditional model of buying property and holding it for appreciation may be becoming obsolete due to shifting social attitudes, economic realities, and emerging investment products. Younger generations are increasingly drawn to alternative models that don't require full ownership.

    The decoupling of real estate investing from homeownership is a key trend driving this transformation. Unlike previous generations who viewed owning a home as a rite of passage, many younger people now see it as a financial burden rather than a milestone. Instead, they're opting for flexible living arrangements like renting and exploring fractional property investments or Real Estate Investment Trusts (REITs) to gain exposure to the real estate market without full ownership.

    Fractional ownership is becoming more mainstream, allowing individuals to own small shares of properties, similar to buying stock in a company. This approach offers two significant advantages: it lowers the entry barrier for real estate investment and aligns with younger generations' preferences for flexibility and diversification. By allocating capital across multiple assets, investors can mitigate risk and increase liquidity.

    Platforms like Arrived offer investors potential returns through dividends from rental income, property appreciation, and other sources, as well as growth in the value of underlying real estate assets over time. REITs provide an appealing alternative to traditional property ownership or fractional investment, but critics argue that investing in REITs is not fundamentally different from buying public company shares.