Fundrise website discusses home affordability and the investing habits of Generation Z, as explained by Alison Staloch.
Affordable Housing Crunch: The Rise of Institutional Investors
With housing prices constantly soaring across the U.S., big players like BlackRock and Vanguard are flooding the residential real estate market. Some see this as a validation of real estate ownership as a long-term investment vehicle, but critics warn it could deepen the affordability crisis by sidelining individual buyers. States like New York, Virginia, New Mexico, and Georgia are throwing their hats into the ring, proposing legislation to put a cap on this growing trend.
Enter Alison Staloch, the brains behind Fundrise. Her company targets markets with a high demand for housing and low supply, such as Austin, Texas. Staloch believes this is a good investment strategy, as the housing shortage drives up rental demand and appeals to long-term investors. However, she's also keeping a close eye on changing insurance costs and taxes in places like Texas, acknowledging that climate change might shift investment patterns in the long run.
When it comes to appealing to younger investors, Staloch sees Gen Z as a gold mine. These digital natives crave real assets (like rental properties) and hands-off investing experiences. They're drawn to emerging technologies like AI and eager to invest in privately-held companies before they go public. Staloch believes regulators are starting to take notice and are considering opening private markets to retail investors in a safe and controlled manner.
Cybersecurity is a top concern for Staloch, and she doesn't shy away from taking an active role in it. She collaborates closely with her chief technology officer, legal team, finance team, and IT department to secure investor data and transactions. Adopting best practices throughout the organization and regularly simulating potential attacks helps keep her team on their toes and aware of potential threats.
In an earlier part of her career, Staloch stayed in public accounting for over 10 years. But when the chance to work at the SEC and then later join Fundrise arose, she leaped at the opportunity. Despite the controversy surrounding changes to the CPA licensure requirements, Staloch believes practical experience is far more valuable than the traditional 150-credit-hour educational requirement. She thinks states like Ohio, which have reduced this requirement, are helping address the shortage of accounting talent by welcoming candidates with varied educational backgrounds.
- Institutional investors, such as BlackRock and Vanguard, are venturing into the residential real estate market, a trend some view as a validation of real estate as a long-term investment.
- Critics warn that this influx could exacerbate the affordable housing crisis, making it difficult for individual buyers to compete.
- States like New York, Virginia, New Mexico, and Georgia have proposed legislation to curb this trend due to concerns about the affordable housing crunch.
- Alison Staloch, the founder of Fundrise, invests in high-demand, low-supply housing markets like Austin, Texas, believing it to be a sound investment strategy.
- In addition to keeping an eye on rental demand and insurance costs, Staloch monitors changing taxes, particularly in Texas, due to potential impacts of climate change on investment patterns.
- Staloch recognizes the potential of Gen Z as key investors, drawn to real assets and hands-off investing experiences, as well as emerging technologies and privately-held companies.
- Regulators are considering granting retail investors access to private markets in a safe and controlled manner, in response to Gen Z's growing influence in the investing world.
- To reassure investors, Staloch prioritizes cybersecurity, collaborating with her technology, legal, finance, and IT teams to secure investor data and transactions.
- With practical experience during her tenure in public accounting and roles at the SEC, Staloch leapt at the chance to join Fundrise and believes Head-stod for CPAs would benefit from more diverse educational backgrounds.
- States like Ohio that have reduced the CPA licensure educational requirement are helping alleviate the shortage of accounting talent by welcoming candidates with varied educational backgrounds.
- In addition to stocks, shares, and traditional finance, Staloch is enthusiastic about the potential growth in cryptocurrency markets as an alternative investment opportunity for her clients.
