- ORIGINAL NEWS
‘If your parents are homeowners, you’re more likely to be a homeowner,’ housing expert says. Here’s why
- SUMMARY
There’s a connection between parents’ homeownership status and their children’s ability to become homeowners.
If a young adult’s parents are homeowners, they’re more likely to receive assistance with down payments and money-saving strategies.
This advantage is attributed to an “intergenerational transmission of status,” which means if parents are successful in certain areas, such as education and wealth, their children are likely to achieve similar outcomes.
Such support has become increasingly important as down payments for homes have increased, making it challenging for first-time buyers to save enough money independently.
Nearly a third of Gen Zers are living at home with their parents due to housing affordability issues.
Having homeowner parents can be beneficial as they have more knowledge about the mortgage application process and can pass on their experiences and insights.
Conversely, renter parents may discourage their children from pursuing homeownership.
Ultimately, a young adult’s upbringing significantly influences their likelihood of owning a home.
If they perceive homeownership as a positive experience, they are more likely to pursue it themselves.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Homeowner parents are more likely to help young adult children with down payments, help them save money and even show them how to achieve homeownership, experts say.”
“‘If your parents are more educated, you’re more educated. If a parent’s more educated and they have more money, then you have more money,’ said Myers, whose research focuses on linking demographic data with housing trends.”
Negative
“If your parent is not a homeowner, ‘then you are less likely to have intergenerational wealth or transferred gifts from your parent for a down payment, which has become quite important as down payments have increased,’ she said.”
“The lack of affordable housing options is pushing young adults to live with their parents, and multigenerational living can help young people build savings to become homeowners, Wachter said.”