Over the past year, millennials have become less likely to need to ask their parents for financial help, get a roommate, or work a second job in order to pay for a mortgage to buy their first home, according to a new survey conducted by Redfin of 1,000 respondents born between 1981 and 1996.
- Comparing the survey’s results to those of a year ago, millennial home buyers feel more confident of their financial situation and that they will be able to afford a mortgage themselves without having to take other measures.
- “Over the last couple years, millennial household incomes have been rising, and America’s youngest professionals now earn more than previous generations did at this age,” says Daryl Fairweather, Redfin’s chief economist. “As a result, they’re needing less and less help from family members to buy a home.”
- Fairweather notes that the bulk of the increase in millennial household earnings has been driven by millennial women, who are working more and earning more than women of previous generations. “Millennials may have postponed getting married, having children, and buying a home while they got their careers on track, but now that they are more established in their careers and earning more, I expect to see more millennials buying homes and checking off those major life milestones,” she says.
- Only about 10% of millennial home buyers say they plan to get help with their mortgage from their parents, down from 17% a year ago. Also, the number of millennials who plan to co-own a home with someone other than a spouse or partner dropped by half over the past year, falling from 14% a year ago to 7%.
- The only measure that showed growth over the past year that millennials said they’d take to afford a home was to get a second job, growing from 29% a year ago to 31% in the most recent survey.
Source: “One in 10 Millennial Homebuyers Say They’ll Rely on Parents for Mortgage Help, Down From 17% Last Year,” Redfin (July 17, 2019)