Alison Staloch, a representative from Fundrise, discusses home affordability and investing tendencies among Generation Z on our site.
In the face of persisting housing affordability issues nationwide, institutional investors are making a big entrance into the residential real estate market, a move some see as an endorsement of real estate ownership as a long-term investment strategy. However, critics warn this trend might sideline individual buyers and fuel the affordability crisis. Legislation is now on the table in New York, Virginia, New Mexico, and Georgia to curb this rising trend.
Alison Staloch, the brain behind Fundrise, believes this trend validates real estate as an approachable investment option. As she delves into the intersection of institutional capital and home affordability, as well as the changing expectations of Gen Z investors, she highlights two trends with significant implications for her business. Her insights also cover cybersecurity in finance, her transition from public accounting, and upcoming changes to CPA licensure requirements.
Alison Staloch
At Fundrise, Alison Staloch is making waves,targeting housing markets where demand exceeds supply. She sees the escalating involvement of big-name investors like BlackRock and Vanguard as a vindication of residential real estate as an accessible investment. But when it comes to individual homeownership among struggling buyers, she maintains that more renters equal more demand, which presents an opportunity. She argues that the housing crisis is primarily a supply issue and that investing in areas undersupplied with housing aligns impact with opportunity. This includes single-family rental communities, build-to-rent developments, and multifamily housing.
Gen Z investors, Staloch remarks, aren't averse to investing; they simply want a different approach. They crave tangible assets over stocks and seek early access. They're digital-native and self-directed, preferring to conduct research and allocate capital independently without traditional advisors. Additionally, they're captivated by transformative technology, with recent research showing that 68% of retail investors believe artificial intelligence has the highest growth potential. They're also more likely to invest in products offering early access to companies before they go public.
When it comes to cybersecurity, Staloch entrusts her Chief Technology Officer to lead the charge, but legal, finance, and IT work collaboratively to allocate resources and set priorities. Protecting investor data and securing transactions is a must; preventing breaches is cheaper than cleaning up after one. For other areas, risk assessments help phase in improvements. They also instill best practices across the organization, making them an integral part of the company culture.
One area Staloch remains hands-on in is her transition from public accounting and her take on CPA licensure changes. She spent over a decade in public accounting but left to take on a fellowship at the SEC. She loved the experience and stayed on as chief accountant for the Division of Investment Management. Eventually, she met Fundrise's CEO, Ben Miller, and was inspired by his vision. She saw it as an opportunity to build something new rather than just operate within an institutional system.
Regarding CPA licensure changes, Staloch believes that a more diverse educational background is essential for leadership. Experience is more valuable than racking up credit hours, and she argues that the extra year required for the 150-hour requirement may not be the barrier. She thinks awareness is a bigger concern, as people often overlook the dynamic nature of accounting.
Keep up with the story by subscribing to Fundrise's free daily newsletter.
[References][1] "Institutional Investors in Real Estate: Overview and Market Dynamics." Congressional Research Service, 2018.[2] "Hedge Funds and Single-Family Rental Homes: A Summary of Policy Debates and Legislative Proposals." National Community Reinvestment Coalition, 2021.[3] Retrieved from New York State Senate, 2022. Bill Number S1572. https://www.nysenate.gov/legislation/bills/2021/S1572[4] Retrieved from Atlanta Journal-Constitution, 2021. "What's driving rising home prices and low inventory?" https://www.ajc.com/news/what-s-driving-rising-home-prices-and-low-inventory/SXJZPA776JCBRDA4ZOUKK7S5GA/[5] "Foreign Investment in U.S. Real Property: Understanding FIRPTA withholding." IRS, 2020. https://www.irs.gov/individuals/international-taxpayers/foreign-investment-in-u-s-real-property-understanding-firpta-withholding
- Alison Staloch, at Fundrise, targets housing markets with high demand and low supply, viewing the emergence of big-name investors like BlackRock and Vanguard in residential real estate as a validation of its accessibility as an investment.
- Staloch considers the increasing presence of these institutional investors as a positive endorsement of real estate ownership as a long-term investment strategy.
- However, she acknowledges that the escalating involvement might displace individual buyers and exacerbate the affordability crisis.
- She argues that more renters equals more demand, which presents an opportunity in the housing market.
- Staloch believes the housing crisis is primarily a supply issue, and investing in areas undersupplied with housing aligns impact with opportunity.
- This includes single-family rental communities, build-to-rent developments, and multifamily housing.
- Gen Z investors, according to Staloch, prefer tangible assets over stocks and seek early access to investments.
- They are digital-native, self-directed, and prefer to conduct research and allocate capital independently without traditional advisors.
- Moreover, Gen Z investors are captivated by transformative technology, with 68% believing artificial intelligence has the highest growth potential.
- When it comes to cybersecurity in finance, Staloch relies on her Chief Technology Officer but ensures that legal, finance, and IT departments collaborate to allocate resources and set priorities.
- Protecting investor data and securing transactions is a priority for Staloch, and preventing breaches is cheaper than cleaning up after one.
- In terms of accounting, Staloch spent over a decade in public accounting before taking a fellowship at the SEC.
- She thinks a more diverse educational background is essential for leadership in accounting, and she advocates for awareness of the dynamic nature of accounting as a bigger concern than the 150-hour requirement for CPA licensure.
