
07/24
Bank of Mom and Dad No Longer Needed for Millennial Homeowners
Just because millennials aren’t using doorbells, doesn’t mean they aren’t buying homes.
It’s true – millennials have been slower to enter the housing market. With lifestyles and finances being vastly different from previous generations, millennials have put homeownership on the backburner.
But as a majority of this generation enters their early 30s, these first-time homebuyers have been the dominate force in real estate.
Last year, Redfin asked U.S. residents how they were going to afford their mortgage – after releasing the same survey again this year, there has been some key differences with how millennials are using their finances.
51% of millennial homebuyers indicated plans to use one or more of the following strategies below to cover their mortgage payments, down from 60% last year:
Do you plan to do any of the following to help you pay your new mortgage? Select any that apply:”
2019 | 2018 | |
Work a second job | 31% | 29% |
Get a roommate/roommates | 11% | 14% |
My parents or another family member will help | 10% | 17% |
Rent my home on Airbnb, VRBO | 10% | 12% |
Co-ownership with someone who is not my spouse | 7% | 14% |
None of the above | 49% | 40% |
It looks like just 10% of millennials plan to get help from parents or another family member for their mortgage payment, down from 17% last year.
Redfin Chief Economist, Daryl Fairweather, explains, “Over the last couple of years, millennial household incomes have been rising […] millennials have postponed getting married, having children, and buying a home while they got their careers on track, but now that they are more established in their careers and earning more, I expect to see more millennials buying homes and checking off those major life milestones.”
Once the baby boomers retire their income will increase and home ownership as well!
Once the baby boomers retire their income will increase and home ownership as well!