DodoFinance Breaking News Made For You!
A recent survey commissioned by real estate company Redfin has shed light on the growing trend of millennials and Gen Zers seeking financial assistance from their parents or family members to purchase a home. The survey revealed that more than a third of young adults planning to buy a home expect help with the down payment, as rising home prices and mortgage rates continue to challenge first-time buyers.
Data from the survey also showed that in 2019, only 18% of millennials used a cash gift for a down payment, a number that has since increased to 23% by 2023. This trend, referred to as “nepo homebuyers,” highlights the increasing reliance on family support for achieving homeownership in today’s market.
Redfin’s chief economist, Daryl Fairweather, explained that the current housing market challenges have led many young adults with family resources to turn to their parents for financial help. This trend has not gone unnoticed by industry experts, with renowned real estate mogul Barbara Corcoran advising younger buyers to seek assistance from their parents given the competitive housing market.
On the flip side, data from John Burns Research and Consulting shows that baby boomers are increasingly assisting their adult children in purchasing homes, further impacting the dynamics of the housing market. However, Fairweather pointed out that young Americans without family support are facing generational disadvantages and often find themselves priced out of homeownership, highlighting the growing divide in the housing market.
With the housing affordability crisis worsening, achieving the American Dream of homeownership and class mobility has become increasingly elusive for individuals without family financial support. As more young adults turn to their parents for help in purchasing a home, the need for affordable housing and equal opportunity in the housing market remains a pressing issue for policymakers and industry stakeholders.
