SAGE Realty Real Estate Agents Examine the Increase in Parents Helping Millennials
In addition to the trend of more millennials getting into the housing market, more parents are helping them buy their homes. In fact, studies show that 17% of parents with children from the ages 18 – 35 expect them to buy a home in the next five years, a 31% jump over the last five years. Our real estate agents at SAGE Realty explore this trend and the implications that it has on the housing market.
Recent research shows that half of the parents who believe that their children will buy a home plan to contribute towards their down payments, and nearly 20% of them say that they plan to cosign the loan. This supports the above statement that parents are increasingly willing to help their millennial children get into the housing market, which is likely connected to the increase in the percentage of millennials buying homes.
Most millennials are well aware that there has been an economic downturn – the housing crash took place around the time many Millennials finished their schooling, meaning they were faced with an undesirable market, while at the same time facing the burden of student debts. They approach debt with a much greater degree of caution–bordering on fear—than generations before. The growing number of parents helping millennials with their first home purchase is not surprising when taking these factors into consideration.
The increase in millennial homeowners is one of the key factors in the housing recovery and something that many real estate agents are banking on in order to bolster the future market. Parents who help their children with down payments only help the market as a whole, and this trend looks to increase. In fact, 75 percent of millennial homebuyers that received financial help from their parents said that it was what made their purchase possible.
Parents are also more lenient in terms of their children moving back in with them – the percentage of parents who will let their millennials live at home to save has increased from 11 to 33 percent, following with the trend of parents giving increased support to their children in order to help them better prepare for purchasing a home.
Our real estate agents at SAGE Realty understand the importance of millennials getting their foot into the housing market in the next coming years. With rent prices high and the housing market on the decline, now is the time to make an investment into a home that will last you into the future. Give our experts a call at 610-687-4000 and we will be happy to guide you through the next steps.
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