Millennials Have the Power to Shape Housing’s Future
A flood of Millennials entering the housing market would help give it the boost it needs to realize its full potential. However, there are a few barriers preventing this from happening—the biggest one being this group of potential homebuyers seems to have difficulty coming up with the down payment. In fact…
- A recent survey by ClosingCorp revealed that two out of every three millennials looking to purchase a home doesn’t understand what closing costs are
- Aside from a lack of mortgage knowledge, an exorbitant amount of student debt is the a major deterrent from saving a down payment
- Over the past five years, as many as 13% of millennials have received down payment assistance from their parents
- More than 75% of the group whose parents provided the down payment said that they were only able to purchase a home because of this assistance
- Other forms of parental aid came by way of: helping with closing costs, co-signing the mortgage, paying down student debt, letting kids move back in with them while they save money, or covering their rent for a period of time
With these kinds of stats, it appears that parents might just be saving the housing market one millennial at a time.