Survey data from Fundrise, which claims to be America’s largest direct-to-consumer private markets manager, reveals key insights into retail investors’ attitude towards their investment portfolio as this year closes out and a new 2025 begins to takes shape.
During the last few years, retail investors have become much “more influential” in private markets, especially as the IPO market continues “to stall amid slow rate cuts.”
As they look towards 2025, Fundrise’s survey shows retail investors are betting on “rate cuts and feeling optimistic about their portfolio — particularly when it comes to real estate.”
Key survey findings shared by Fundrise are as follows:
- 96% of retail investors have paid attention to recent news about interest rate cuts and related economic impacts. Four storylines have majority recall: interest rate cuts, mortgage rates dropping, more anticipated rate cuts, presidential support for lowering interest rates.
- Optimistic retail investors outnumber pessimists by a 4 to 1 ratio: 60% say they’re optimistic about their investment portfolio, compared to 15% who are pessimistic.
- A 51% majority of retail investors predict a further decline of at least 0.5% in interest rates over the next 6 to 12 months.
- Retail investors generally believe most investment categories have performed above average over the past 12 months. The top four categories are: gold, US stock indexes, private tech sector investment (venture capital), residential real estate.
- Interest rate declines fuel investor appetite for stocks and real estate: Given rate declines, retail investors are especially likely to find stocks and real estate to be desirable investments. Savings accounts and fixed income are rated at the bottom.
About the survey’s respondents:
1,000 U.S. adult retail investors (age 18 and older) comprise a “scientific random sample with a margin of error of 3.1%.”
All respondents have investment portfolios and/or “use investing apps or a brokerage firm, but none are professional investors or experts.”
This scientific random sample was surveyed “between September 30, 2024 and October 2, 2024.”
Key demographics are as follows (according the Fundrise update):
- 51% are Male; 49% Female.
- 24% are Millennial; 28% Gen X; 45% Baby Boomers or seniors; 3% Gen Z
- 37% have household income over $100K, and the median is $80,000
- 73% are White; 10% Black; 16% Hispanic; 9% Asian
- 63% are College Educated.