Redfin survey: Millennials and Gen-Z need parental money to buy a house

Redfin survey: Millennials and Gen-Z need parental money to buy a house

The cost of homeownership in the U.S. has reached levels that have become unaffordable for many younger citizens, particularly Millennials and members of Generation Z. According to a recent survey by Redfin, over a third of Americans under the age of 40 planning to purchase a home or apartment require financial support from their parents to make the required down payment. The rising prices have meant that even young adults with a respectable income are dependent on financial help in order to be able to purchase real estate.

The survey shows that 36 percent of Generation Z and 28- to 43-year-old Millennials expect their parents to provide them with financial support to cover the down payment on a home. Compared to five years ago, the number of young adults in need of financial assistance has doubled. Another proportion of those surveyed even plan to live with their parents or other family members in order to reduce the costs of purchasing property.

Current mortgage rates, which are nearly 7 percent, twice what they were when President Joe Biden took office, and an average sales price of about $485,000 per home are creating additional burdens that make it difficult for young Americans to acquire homeownership. These financial hurdles mean that many respondents are unable to save for a down payment and are therefore precluded from purchasing a home.

The continued rise in property prices also has an impact on the real estate market. The number of unsold houses increased by 5.9 percent compared to the previous month and by 10.3 percent compared to February last year. According to the National Association of Realtors, February's inventory of homes for sale was the highest since 2020. These developments highlight the growing challenge for young Americans to realize their dream of home ownership.