Forget the property ladder - Europe’s next generation is investing instead

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Homeownership among 25–34 year olds in the EU has fallen by over 10 percentage points since 2010 - while participation in capital markets is quietly booming. In Germany, just 10% of Gen Z plan to buy a home in the next five years. In France and Spain, young adults are increasingly prioritising investing over saving for a deposit. 

This isn’t just about affordability. It’s a generational shift in how wealth is built.

Where previous generations focused on property as the primary vehicle for financial security, today’s young professionals are building portfolios, not picket fences. They’re skipping the mortgage and buying ETFs. Choosing optionality over ownership. And doing it all from their phones.

At Shuttle, we believe this isn’t a short-term workaround - it’s a long-term realignment. The question isn’t “Why aren’t they buying homes?” It’s “What are they doing instead?”

Let’s unpack what’s really happening - and what it means for the future of investing in Europe.

The Old European dream - Stability through homeownership

For decades, buying a home wasn’t just a milestone. It was the plan.

Across Europe, homeownership has long been seen as the backbone of financial stability. Whether you were in Madrid, Munich or Marseille, the playbook looked similar: get a job, save for a deposit, buy a home, build equity, retire comfortably. It was a system reinforced by low interest rates, government incentives, generous mortgage terms, and (crucially) a strong cultural bias toward owning over renting.

In many countries, it still is. Take Poland, where over 85% of people own their homes, or Hungary, where government schemes have made home-buying a national priority. Even in countries with lower ownership rates, like Germany, the cultural narrative has shifted only slowly.

But for younger Europeans, the gap between the narrative and the reality is widening fast.

As home prices have soared and wages stagnated, the traditional model has started to feel outdated - even out of reach. For many, the promise of stability through property is being replaced by a search for flexibility, access, and new ways to grow wealth. And that’s where investing comes in.

Why the Old Model is cracking

a) Housing across Europe is increasingly unaffordable

Let’s call it what it is: a full-blown affordability crisis. Since 2010, EU house prices have risen nearly 50%, with much sharper increases in key markets like Germany (+90%), the Netherlands (+80%), and Portugal (+75%) [source: Eurostat]. Meanwhile, wages haven’t kept pace - especially for under-35s, many of whom face precarious employment and rising rents that erode savings potential.

The result? Homeownership among 25-34-year-olds across the EU is declining fast. In cities like Berlin, Paris, and Dublin, buying a first home now feels more like a fantasy than a milestone.

b) Investing feels faster, fairer, and more flexible

While property demands years of saving and mountains of paperwork, investing today is frictionless. A few taps on a smartphone and you’re holding a global ETF. There’s no estate agent, no notary, no 30-year repayment plan.

A 2023 Euroclear report showed that retail investor activity in European capital markets grew 39% year-on-year, with millennials and Gen Z accounting for the majority of new accounts opened. These aren’t just hobby traders - they’re building real portfolios, often starting with modest monthly contributions and growing from there.

c) Mindset shift: Mobility > Mortgages

Younger Europeans are mobile, digital-first, and more likely to work remotely or move countries. For them, being tied to a single property - especially one that drains liquidity and limits flexibility - can feel like a step backward.

Investing offers agility. You can start small, stay diversified, and remain liquid. And crucially, you don’t need permission from a bank to get started.

d) Property doesn’t feel as “Safe” anymore

Rising interest rates, stagnant wages, and increased maintenance costs have taken the shine off the traditional real estate pitch. Add to that climate risks, tightening rental regulations, and political instability in some markets, and the narrative of property-as-safe-haven starts to wobble.

Meanwhile, stock markets (for all their volatility) have delivered strong long-term returns. And for a generation raised online, volatility isn’t scary. It’s normal.

The takeaway? For a growing cohort of young Europeans, investing isn’t a Plan B. It’s the main plan - and property might just be the alternative.

A healthy dose of Realism

Let’s not get carried away. Just because investing is more accessible doesn’t mean it’s easier.

Yes, you can buy into global markets in 30 seconds. Yes, you can start with €50 instead of €50,000. But building meaningful wealth still requires time, discipline, and a stomach for volatility. Especially if you’re investing through market cycles, not just hype cycles.

Unlike a mortgage - where repayments are mandatory and the “investment” is forced - investing asks you to show up consistently, even when your portfolio is red. That’s not easy. It takes habit, not just optimism.

And it’s worth saying: property still has strengths.

• It offers leverage - a small deposit controls a large asset.

• It often acts as an inflation hedge.

• It’s a tangible asset, which still matters psychologically.

• And in many countries, it comes with tax perks or inheritance advantages.

So no, this shift isn’t about saying “property is bad.” It’s about recognising the trade-offs and rethinking which set of risks you’re more willing to live with.

Property ties up capital, reduces flexibility, and may deliver slower, less liquid returns. Markets are faster, more flexible, and potentially more scalable - but emotionally harder to stick with.

Neither path is easy. But the new one might fit this generation’s lifestyle, values, and opportunities better. The trick is not to romanticise either. Just get clear about what you’re solving for - and invest accordingly.

What this means for Europe's emerging investors

If you’re in your late 20s to early 40s, earning well, and already comfortable with public market investing - congratulations. You’re ahead of the curve. You’ve stopped waiting for someone to hand you the keys to a mortgage. You’ve started building your financial future on your terms.

This shift isn’t about giving up on property forever. It’s about not waiting for the old model to catch up with your life.

Here’s what the savvy European investor is doing now:

• Investing earlier. Not waiting until they’ve “made it” to get started.

• Staying liquid. Keeping options open instead of locking everything into one asset.

• Diversifying smartly. Mixing public markets with emerging access to private assets - the kind of opportunities that used to be reserved for the ultra-wealthy.

• Reframing success. Not just chasing homeownership for the sake of it, but building wealth that gives them freedom - to work, live, or move however they want.

The Bigger Picture - Housing, Markets, and European policy

When millions of young people across the EU change how they build wealth, it’s not just a trend. It’s a structural shift - and it’s already reshaping housing demand, market behaviour, and the policy landscape.

For Housing

Homeownership was once a rite of passage. Now, it’s becoming a long-term “maybe.” That has consequences.

As more young Europeans delay or skip property purchases, the demand profile changes. Rental markets in cities like Lisbon, Berlin, and Amsterdam are already strained - and that pressure will only grow. Meanwhile, governments across the EU continue to push homeownership through subsidies, tax breaks, and buyer schemes… aimed at a cohort that’s increasingly uninterested or unable to engage.

Expect rising calls for:

• better tenant protections

• more affordable, long-term rental models

• hybrid ownership schemes (e.g. rent-to-own, shared equity)

• and rethinking the role of housing in social mobility

For Capital Markets

We’re seeing the early signs of a more investor-led generation - one that’s digitally native, globally minded, and increasingly comfortable with risk.

More capital is flowing from salaried accounts into ETFs, managed portfolios, and even early-stage investments. If that continues, it changes who gets to participate in value creation - and when.

Platforms (like Shuttle) that offer structured, accessible private market exposure could become core components of the new European wealth stack - just like real estate once was.

For Policy

Policymakers can’t assume that “helping people buy homes” is the only way to promote wealth-building.

If public and private markets are becoming the primary investment vehicles for young Europeans, policy will need to keep pace. That might mean:

• encouraging long-term investing via ISAs or similar savings vehicles

• modernising capital gains frameworks

• regulating new asset classes and platforms responsibly, without stifling access

• recognising that financial security isn’t only about what you own - it’s about what you grow
  

The old script (job, house, pension) is fading. What’s emerging is a more fluid, personalised approach to wealth. Less about permanence, more about progress. Less about assets you live in, more about assets that work for you.

The future of wealth in Europe won’t be built one mortgage at a time. It’ll be built one smart investor at a time and that shift is already underway.

What we’ve been working on at Shuttle

• Closing stages of confirming two exciting start-ups for Drop #4 💧 

• Launched for the very first time on Product Hunt 🚀 

• Prepping our Launch campaign for Drop #4 👨‍💻 

The Unsophisticated Investor is brought to you by Scott & Rob, the founders of Shuttle. We’re both sick of private markets being a playground exclusive to the ultra-wealthy so we started a company to challenge the status-quo. Shuttle’s singular focus is to unlock private markets for Millennial and Gen Z tech professionals and help them build wealth through the highest performing private market opportunities.

Scott & Rob
Shuttle Co-Founders