The Bank of Mom and Dad is helping to keep the housing market afloat – a new survey from Redfin determined nearly one-quarter (23.8%) of young Americans who recently bought a home tapped into family money to help cover their down payment.
The typical homebuyer’s down payment in 2024 was roughly $63,000, equal to 16.3% of the typical home-purchase price. This figure is up 7.5% from 2023. Redfin’s survey defined “family money” as either a cash gift from family or an inheritance.
The survey also found roughly one in five (20.7%) Gen Zers or millennials who recently bought a home used a cash gift from family to help with their down payment, and roughly 11% used an inheritance. About 18% reported they lived with family or friends to save money for their down payment. However, there are other ways for Gen Zers and millennials to finance a down payment – more than half (56.5%) saved directly from paychecks, more than one in 10 (12.7%) used cryptocurrency to help fund their down payment, and 20.4% sold stock investments. Retirement funds were also siphoned – 12.3% of Gen Z and millennial buyers pulled money out of retirement accounts early, and 10.5% contributed less to retirement.
DROP THE PRICES. We have weakened our dollar to where we are making our kids live in 3rd world America where the whole family lives one house.
I agree Nick that the prices should fall. I think a lot of agents are or were on a COVID high! Well after COVID, agents were still allowing sellers to determine price! Now the market is almost upside down with way too many units on the market. just wait Nick the prices will fall and I hope the families that helped with down payments are not left with foreclosure prospects! By the way whole families living under one roof might not be so bad for the very young and old members!! Research shows that’s not all bad.