Redfin: One-Quarter of Young Buyers Used Gift or Inheritance in Down Payment

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Redfin, Seattle, released a new study finding that 23.8% of Gen Z or millennials who recently bought a home used some form of family money to help fund their down payment.

Redfin defines family money in this case as either a cash gift from a family member or an inheritance.

Specifically, 20.7% of the recent Gen Z or millennial buyers used a cash gift from family; 11% used an inheritance.

However, 56.5% of Gen Z and millennial buyers said they saved directly from paychecks to make up their down payment.

About 18% reported working a second job or living with friends and/or family to save money, and 20.4% said they sold stock investments.

Another source for young buyers: 12.7% said they used cryptocurrency to help fund their down payment.

Retirement savings were affected: 12.3% of Gen Z or millennial buyers reported pulling money out of their retirement accounts early and 10.5% said they contributed less to retirement.

For young renters who aren’t planning to buy anytime soon, the survey points to down payments as a big issue–18% said they’re unable to save for one.

One-quarter of those not looking to currently buy said they can’t afford a home in the area where they want to live, and 23.4% said they are not financially prepared for various surprise costs associated with owning a home.