Gen Z is turning its back on property and looking to stock investments instead as a way to “build wealth”.

More than a third of 18- to 24-year-old Irish Revolut customers claim that stocks and ETFs (exchange-traded funds) are a better way to build long-term wealth than getting on the property ladder.

An ETF is a type of investment that holds a collection of assets, like stocks or bonds, and is traded on a stock exchange similar to individual stocks, but allows investors to easily diversify their investment portfolio.

Reforms to tax rules around the funds have long been mooted here, but that has not discouraged Gen Zers, who hold the largest share of ETFs, at 16.5%, compared to any other age group.

Rolandas Juteika of Revolut said: “There is a clear shift in how younger generations are approaching wealth-building.

“They can’t rely on buying a home to start building towards their financial future, so they are starting earlier, investing smaller amounts and using tools that were once the preserve of professional investors.

“This trend is a direct result of both increased financial literacy and the accessibility of new platforms.”

Younger people struggle to get on the property ladder as there are not enough starter homes for sale and they need to save a 10% deposit.

Also the current average first-time buyer’s sold price is a whopping €405,500, up €20,000 in a year, which means having to save a minimum deposit of €40,550, according to Revolut, which has more than three million customers in Ireland.

It found a “notable number of those in Generation Z [aged 18-24] appear to be turning their backs on home ownership to prioritise building long-term wealth via the capital markets instead”.

Revolut is a ‘neo-bank’ with an EFT platform and therefore has a financial interest in encouraging young people into the EFT market.