Nepo-Homebuyers

More Than One-Third of Gen Z and Millennial Homebuyers Plan to Use Family Money For Down Payment - Seite 2

“Nepo-homebuyers have a growing advantage over first-generation homebuyers. Because housing costs have soared so much, many young adults with family money get help from Mom and Dad even when they have jobs and earn a perfectly respectable income,” said Redfin Chief Economist Daryl Fairweather. “The bigger problem is that young Americans who don’t have family money are often shut out of homeownership. Many of them earn a perfectly good income, too, but they aren’t able to afford a home because they’re at a generational disadvantage; they don’t have a pot of family money to dip into. This contributes to wealth inequality and often prevents young people from gaining economic ground on their peers who come from more privileged backgrounds. The American Dream is just as much about class mobility as it is the home with a white-picket fence, and the housing affordability crisis has made both elements of the dream harder to attain.”

Survey results show that lack of affordability is biggest barrier to homeownership for young Americans

Among the young Americans who aren’t likely to buy a home in the near future, lack of affordability is the biggest barrier.

Nearly half (43%) of Gen Zers and millennials say they’re unlikely to purchase a home soon because the homes on the market are too expensive, the most common response. Roughly one-third (34%) say their ability to save for a down payment is a barrier to buying a home, the next most common response, followed by ability to afford mortgage payments (29%) and high mortgage rates (29%).

Of the Gen Zers and millennials who aren’t planning to buy a home in the near future, 16% cited lack of financial support from family or friends as a reason.

More than one in 10 (12%) young Americans said they need to pay off student loans before they would be able to purchase a home.

To view the full report, including charts and survey methodology, please visit:
https://www.redfin.com/news/gen-z-millennial-down-payment-family-help

About Redfin

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