Nepo-Homebuyers: 40% Of Under 30s Received Family Money For Down Payment

An eye-popping 38% of recent homebuyers under age 30 used either a cash gift from a family member or an inheritance in order to afford their down payment. This is according to a Redfin commissioned survey of recent movers conducted in Spring 2023. First-time homeownership has become increasingly expensive, which has shut the door to homeownership for young people without family money. As a result, a large share of young homeowners can be labeled “nepo-homebuyers,” meaning they received family money to purchase a home. This phenomenon contributes to intergenerational wealth inequality and limits economic opportunities for young people and their families.

Young Homebuyers Often Have Help From Family

It is rare for a young person to be able to afford a home. Senior Americans (65 and older) are about two times more likely to be homeowners than young Americans (under 35). And oftentimes young people who own their home had help from family. In the Redfin survey, which asked how recent homebuyers accumulated the money for their down payment, 509 respondents were under the age of 30. Among those young homebuyers, 23% used a cash gift from family members and 21% used inheritance money for their down payment.