Ah, homeownership. 🏘️ For some, getting their little slice of the American dream is easy peasy. For others, it's more of a pipe dream. 😴✨
Research shows if parents own a home, their kids are likely to own one, too. Let's nerd out together on the reasons why. 🤓
Here’s Five Fast Facts on family homeownership:
- 🎁 Gift of a Lifetime - According to the National Association of Realtors, roughly 23% of first-time home buyers used a gift or a loan from friends or family for the down payment of their house.
- 🤑 Daddy's Deep Pockets - Other data shows that 40% of first-time homebuyers tap “the bank of mom and dad” to make their down payments. That's up from just a third before the pandemic.
- 🧑🏼🎤Zoomers in the Basement - Almost a third (31%) of the Gen Z population still lives at home because they can't afford to buy or rent a place. The silver lining? Being able to shack up with their folks (AKA multigenerational living) is a great opportunity to save a lot of money.
- 👨👩👧👦 Keepin' It in the Family - When parents are homeowners, there's a good chance they have the means to help their kids out financially with a down payment, whether it's a gift or a loan (cough, cough, intergenerational wealth). They can also pass down knowledge of the homebuying process and have room to let children live at home longer to save more money.
- 🏙️ Renters 4 Lyfe - When parents are lifelong renters, they have less space for adult children to camp out and save up to buy a home. Renter parents are also less likely to encourage homeownership or have first-hand knowledge on how to navigate the homebuying process.
🔥Bottom line: Today's down payments are an arm, a leg, and any other third appendage of your choice. Tapping the bank of mom and dad most definitely helps. However, there's no shame in renting for as long as your heart and wallet desire. It's all about keeping a roof over your head. Shopping around for a home? Before you hit those open houses, read this article all about the increase in mortgage rates.
Are you carrying on the homeowning legacy in your family?
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