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How Home Crowdfunding May Let Millennials Live the American Dream

By Corazon Gritar

home crowdfundingAmerican millennials are making the news once again. This time, it’s because the demographic as a whole can’t afford to purchase homes. According to a survey by Apartment list, a staggering 80% of millennials say that they want to buy a home. Here’s the kicker: 69% have less than $1000 available for a down payment. What’s more is that 40% don’t have any savings at all.

Real estate experts say it’s a perfect storm: rising home prices, record student loan debt, and a lack of savings. In fact, many experts believe that even if the average millennial did have money available, it wouldn’t be enough. That’s because it would take decades before they could afford homes in the most expensive housing markets. Most experts recommend having at least enough cash to cover three months of living expenses before buying a home.

In one study, CNBC found that millennials in San Diego, Los Angeles and Austin would have to wait for 19 years before they could afford a home. Those who wanted to move to San Jose or San Francisco faced an even steeper climb of 24 years.

Because of this bleak outlook, some companies are stepping in to help millennials and Gen Z. Washington DC business Fundrise is one of them. The company has come up with an innovative idea that help young people get on their feet while aiding the city’s existing real estate market.

Fundrise, a housing management company, created an investment platform called eFund, which is crowdfunding for homeowners. How the home crowdfunding works is simple: prospective home buyers have to purchase shares through eFund, with a minimum investment of 100 shares at $10 each. The money from these shares goes to investing in housing developments and renovations across their city, and in return, the millennial investors would gain access to homes for sale in their eFund Pool at a lower price. The company says the homes would be 10% cheaper than if purchased through a broker.

Ben Miller, co-owner and CEO of Fundrise, explains that he wanted to help millennials not only because of their inability to purchase a home outright, but because of the changing ideas surrounding moving into a home. While the average American moves about 12 times in their life, millennials are changing things up and choosing to rent in larger cities. Business Insider reports:

Essentially, a whole generation — tens of millions of people — are moving from renting to buying and having families. But unlike their parents, the idea of moving way out into the suburbs is not on their agenda. But that’s not how the American housing business is built. It’s built around people moving to the suburbs and buying the white picket fence house made by the public homebuilder. And that’s not in the cards, in my opinion.

The home crowdfunding platform known as eFund hopes to continue expanding into many cities across the country. Still, it remains to be seen whether a 10% discount is enough to reverse this alarming trend.

Photo Credit: stock photo

March 18, 2025

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Comments

  1. 1

    Brady says

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  2. 2

    Angela says

    You certainly know how to keep a reader entertained. Fantastic job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!

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    • 4

      Len Penzo says

      Look at the bright side, Sherill … she could have got no views at all!

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    Appreciate the recommendation, Len. Will try it out.

Trackbacks

  1. 5 Alternative Lending Options for Funding Your Startup Business – Len Penzo dot Com says:
    November 27, 2019 at 4:11 am

    […] For quite some time, crowdfunding has been gaining popularity because it is taking investments from more than one person at the same time. So, how does crowdfunding work? […]

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