A recent survey conducted by LendingTree reveals that a significant number of today’s homebuyers are relying on financial support from their families to achieve their dream of homeownership. The survey, which included 2,000 adults, found that 39% of homeowners have received assistance with their down payment. Among Generation Z homeowners, 78% reported receiving financial support for their down payment, primarily from their parents. Millennials followed closely, with 54% having received down payment assistance, while 33% of Generation Xers also received help.
The high prevalence of down payment assistance highlights the challenges posed by the current housing market. Even if individuals are eligible for a mortgage, the cost of purchasing a home can still be daunting. Jacob Channel, Senior Economist at LendingTree, noted that the need for down payment assistance underscores the expensive and complex nature of today’s housing market.
In a separate survey conducted by Realtor.com and Censuswide among 2,291 Americans planning to buy a home within the next year, 51% of respondents expressed the possibility of seeking help from their parents to prepare for homeownership. Interestingly, 29% of respondents mentioned that they had already moved in with their parents to save money in anticipation of buying a home, and an additional 22% said they would consider doing the same.
Furthermore, the survey revealed that 32% of respondents were living with other family members, such as siblings, aunts, uncles, and cousins, to pool their resources for homeownership. Another 24% expressed a willingness to explore this option.
Danielle Hale, Chief Economist at Realtor.com, emphasized how challenging market conditions, characterized by high mortgage rates and a persistent shortage of homes for sale, have led to shifts in buyer behavior. Many people are now considering alternative living arrangements they may not have contemplated in the past due to the competitive nature of today’s housing market.
You can read this full article at: https://wrenews.com/homebuyers-increasingly-tap-into-the-bank-of-mom-and-dad/
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