You’ve heard of “Nepo Baby,” but what about “Nepo Homeowner”? While we are certainly not a fan of the term, it speaks to a growing trend gaining more traction across the U.S. and locally here in Charlotte… family involvement in real estate.
A recent survey of 3,000 U.S. homeowners and renters by Qualtrics shows that many young homebuyers are seeking support from family members to achieve their real estate goals. Here are some of the interesting takeaways:
- 36% of Millennial (born 1981 – 1996) and Gen Z (born 1997 – 2012) homebuyers plan to use money from family to fund their down payment
- 16% say they will use an inheritance to contribute to or cover their down payment
- 13% plan to live with their parents or other family members to save money for a future home purchase
While working to earn more money is still the number 1 and most common path to purchase a home (60% of Millennials and Gen Z), young homebuyers are 2x as likely to use family money compared to 5 years ago. Just 18% of millennials surveyed said they used a cash gift for housing in 2019. That percentage then increased to 23% by 2023 so the leap to 36% in 2024 (just one year later) is significant.
The trend of greater family financial involvement also extends beyond real estate. Nearly half of parents (47%) with children over 18 report providing their adult children with some sort of financial help according to a recent 2024 savings.com report.
Read the full Qualtrics report (commissioned by Redfin) here.
