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2w ago

Nearly a Quarter of Young Buyers Tap Family Funds for Home Down Payments

Young homebuyers are increasingly reliant on intergenerational support to meet rising down payment requirements in today’s high-rate housing market.

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Millennials and Gen Z are more often going to their parents and families for financial assistance in putting a down payment on a home, with housing prices still in flux after the pandemic.

Overview

  • 23.8% of recent Gen Z and millennial homebuyers used family assistance for their down payments according to a May Redfin-commissioned Ipsos survey.
  • Cash gifts funded 20.7% of purchases and inheritances covered about 11% of down payment costs.
  • Roughly 18% of young buyers lived with family or friends to save toward their down payment.
  • Other funding approaches included selling stock investments (20.4%), working second jobs (17.6%) and liquidating cryptocurrency holdings (12.7%).
  • The typical down payment rose to about $63,000 in 2024, equivalent to 16.3% of the median U.S. home purchase price.