According to a recent Redfin survey, nearly one-quarter (23.8%) of young Americans who recently purchased a home used family funds to assist with their down payment.
In this article, “family money” refers to either an inheritance or a monetary present from family. Approximately 11% of Gen Zers or millennials, or young Americans, who recently purchased a home utilized an inheritance, and nearly one in five (20.7%) used a financial gift from relatives to help with their down payment.
Other ways that Gen Zers and millennials turn to their families for support include: In order to save money for their down payment, over 18% said they stayed with family or friends.
The only strategy mentioned by young homebuyers more frequently than cash gifts from family was direct wage savings, as over half (56.5%) of recent Gen Z and millennial buyers did.
Buyers Manage the U.S. Housing Market
| 21% of Gen Z/Millennial Homebuyers Used a Cash Gift From Family to Help Fund Down PaymentHow did you accumulate the money you need for a down payment? (Select all that apply) | ||||
| All | GenZ/Millennial | Gen X | Baby boomer | |
| Saved directly from paychecks | 54.0% | 56.5% | 55.8% | 51.4% |
| Worked a second job | 11.2% | 17.6% | 12.1% | 5.1% |
| Cash gift from family | 13.4% | 20.7% | 13.8% | 7.1% |
| Sold stock investments | 13.2% | 20.4% | 10.8% | 8.8% |
| Pulled money out of retirement funds early | 9.4% | 12.3% | 11.1% | 6.1% |
| Inheritance | 10.3% | 10.8% | 11.7% | 8.7% |
| Contributed less to retirement savings | 6.4% | 10.5% | 6.9% | 2.4% |
| Sold cryptocurrency investments | 5.4% | 12.7% | 3.5% | 0.5% |
| Sold another home | 27.0% | 15.8% | 25.0% | 36.0% |
| Used equity from another home I still own | 9.5% | 12.6% | 8.9% | 7.8% |
| Lived with parents/family/friends to save money | 9.3% | 18.1% | 7.9% | 3.2% |
| I received assistance from the government | 4.5% | 7.9% | 4.8% | 1.2% |
| I received assistance from a non-profit association | 5.5% | 11.2% | 5.2% | 0.9% |
