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Insight of the Day: Over One-Third Of Gen Z & Millennials Are 'Nepo Homebuyers' Who Expect Their Parents To Help Them Buy A Home

The housing landscape has undergone significant shifts, impacting younger generations' ability to achieve independent adulthood. Owning a home, once a symbol of success, now presents challenges due to rising costs and stagnant wages. Enter the concept of "nepo homebuyers"—Gen Zers and millennials who expect parental assistance in purchasing a home.

Here are key points to consider:

1. Financial Support: A Redfin survey reveals that over one-third of Gen Zers and millennials seeking homeownership anticipate help from their parents, often in the form of direct financial contributions. These "nepo homebuyers" recognize the hurdles they face and turn to family for support.

2. Safety Nets: Beyond financial aid, young potential homebuyers explore other safety nets provided by their parents. Some plan to use portions of their inheritance for down payments, while others temporarily move back home to save money.

3. Changing Housing Market: The housing market has experienced extreme fluctuations, especially during the Pandemic Housing Boom. Home prices surged, mortgage rates skyrocketed, and supply dwindled. In 2023 alone, prices rose by 7%, with a median price of $417,700 for houses sold in the U.S.

4. Generational Wealth: Expecting parental help isn't new. Passing down property has historically been a way to maintain generational wealth. Framing younger generations as entitled overlooks the broader context. Gen Z and millennials face different realities than their predecessors, including economic challenges and unprecedented market dynamics.

In summary, the term "nepo homebuyers" reflects a pragmatic response to a complex housing landscape. Rather than labeling them as entitled, let's recognize the evolving realities and the role generational wealth plays in shaping opportunities.

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