The way we think about ownership has remained remarkably consistent for decades, even though the world around it has changed dramatically. We still tend to assume that buying more assets represents financial progress. But modern technology, demographics and economics are forcing us to reconsider the veracity of that assumption. Ownership no longer carries the same advantages it once did, and access is increasingly competing with possession. By way of example, among Americans born in the 1940s, around 70% owned a home by the age of 35. For early Millennials, that figure fell to roughly 50%. It’s tempting to conclude that younger generations simply don’t value ownership the way previous generations did. 

But I think that it isn’t ownership that has become less important, but rather the value proposition behind ownership has changed. 

Technology has separated access from ownership

Over the past two decades, technological advancements have profoundly transformed the link between ownership and utility. Throughout much of modern history, owning an item was the only dependable method to gain its utility; listening to music meant buying records, using software required purchasing a license, and watching a movie necessitated buying a DVD. Today, however, streaming platforms, cloud-based software, and ride-sharing services have completely shifted this paradigm, leading consumers across the economy to increasingly pay for access rather than possession.

This transition transcends technical innovation and is now altering our perception of value. In an era where utility is available instantaneously and often as seamlessly as clicking a button, the “traditional” benefits of ownership have significantly diminished. Instead of evaluating the possibility of acquisition, individuals, particularly younger generations, are increasingly scrutinizing the real necessity of it. This shift in perception is slowly but surely transforming consumer patterns across almost every industry. 

Demand for real estate is becoming more difficult to gauge 

Real estate, nonetheless, is more of an outlier. In contrast to digital media or transport services, the ownership of residential property has traditionally offered more benefits than just utility. It has been one of the primary ways for families to invest, accumulate wealth, build financial security and pass assets from one generation to the next. These benefits, I believe, still hold strong, which is why owning a home still carries a strong appeal. The challenge today lies in the fact that economics of homeownership have changed alongside preferences for spending. Since the late 1980s, the share of U.S. consumer spending devoted to live experiences has grown by around 70%, reflecting a broader preference for access and experiences over accumulating possessions.

A combination of escalating home prices, hikes in interest rate and the rising costs of insurance and taxes has made the path to ownership far more arduous than it was for previous generations. I don’t think the issue is a lack of homes, but rather a crisis of affordability. Many younger buyers still aspire to own a home, but they’re approaching the decision to buy much more cautiously because the financial commitment has become far greater than it once was.

The future isn’t owning less. It’s owning more selectively.

I don’t believe we’re moving toward a society that values ownership less. I do think we’re becoming much more selective about what is worth owning. Technology has proved that many products provide just as much value through access as through ownership, while changing economic conditions have forced people to think more carefully before making major financial commitments. Ownership is no longer the default choice simply because it always has been.

That doesn’t mean ownership has lost its relevance. According to the World Economic Forum, homeowners still hold, on average, around 40 times the household wealth of renters, underscoring the long-term financial advantages of ownership. However, not every asset carries the same value proposition. While items that appreciate over time or offer long-term utility will likely still justify traditional ownership, others are rapidly transforming into services that users simply access on demand. So, in my mind, ownership isn’t disappearing, but we are becoming significantly more selective about whether an asset is truly worth the value of ownership.

Find more reflections on real estate, entrepreneurship, business, AI and other interests of mine on my YouTube and social media channels.