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Millennials are purchasing homes less frequently and later than generations before them because of rising home prices due to high demand and limited supply, leaving them to rely on the financial help of their parents.
Millennials are not only becoming homeowners at lower rates, but they are also more commonly turning to others for help compared to prior generations. A 2018 study from financial services company Legal & General found that 43% of people under 35 received help from parents or family members when purchasing a home.
Jessica Yourdon, a 36-year-old social media coordinator, said after getting married, she didn’t have enough money to put a down payment on a house, so she turned to her parents.
“It was really hard to accept when they wanted to give me money, and they’re like, ‘You’re our daughter. We love you, and it is our job to take care of you,’” Yourdon told NBC News. “Once it got to that point, I think when she said she wanted to do that, my husband and I were both speechless.”
Millennials are also faced with disproportionately high rates of student loan debt and are, on average, getting married later in life, thereby delaying homeownership.
The baby boom generation — around 57 to 75 years old — have been accumulating money for years and are ensuring the longevity of their income by gifting it to their millennial children.
Caroline Blankfort, a real estate agent based in Nashville, said parents often give their children money to pay a down payment or starter cost on a home.
“It still is a chunk of change that some people don’t plan for when they’re working and saving,” Blankfort told NBC News. “And then when the time comes to buy a house, it’s like, ‘Oh, wait, hold on, I’m not ready for this.’”