A recent survey has revealed that homebuyers with children are significantly more likely to receive financial help from family compared to those without children. This trend highlights the increasing financial burden faced by families in the current housing market.
According to a survey conducted by Redfin, a notable 25% of recent homebuyers with children received cash gifts from family for down payments. In stark contrast, only 12% of buyers without children reported receiving similar support. Additionally, 17% of homeowners with kids noted receiving family assistance with their mortgage payments, compared to just 8% of those without children, indicating that family support extends beyond initial home purchases.
The survey further details that 11% of homeowners with children utilized inherited money to manage their mortgage payments, surpassing the 7% of child-free homeowners who did the same. These findings suggest that financial dependency on family is more prevalent among households with children.
Homeowners with children are also more likely to engage in side jobs, with 23% of them reporting supplementary work compared to 12% of those without children. There is also a tendency among these homeowners to use retirement funds prematurely, as evidenced by 14% of them doing so, compared to 9% of their counterparts without children. This behavior may be attributed to the escalating housing costs post-pandemic, which have increased by over 40%, affecting both groups alike.
The inclination for family-based financial support among those with children can be attributed to several factors. Families with children often opt for larger homes with more amenities, which naturally cost more. This preference for enhanced living conditions means 68% of families with kids are unwilling to compromise on space, compared to 60% of child-free buyers.
The survey reveals that families prioritize proximity to quality schools, grocery stores, and sufficient space to work from home, homeschooling options, and low climate risk areas. Financially, households with children tend to have higher incomes, with 65% earning $50,000 or more annually, compared to 42% of households without children.
Another point of interest is that younger generations, such as Gen Zers and millennials, are more often the recipients of financial help from their families. This demographic makes up 67% of the homeowners with children, as opposed to 25% of those without children, further demonstrating the generational aspect of the economic support system.
There is a noticeable trend towards multi-generational living arrangements, driven by the high costs of housing, as reported by Redfin agents. This includes larger homes that accommodate both older parents and adult children, offering a solution to the financial stresses faced by multiple generations within a family. Julie Zubiate, a Redfin Premier agent, observed that tech industry workers frequently seek homes with additional dwelling units (ADUs) to house extended family members.
The data was gathered in a survey commissioned by Redfin through Ipsos, collecting responses from 1,802 U.S. residents aged 18-65 in September 2024. This research compared households with children under 18 to those without, providing a comprehensive view of the differing financial strategies employed by these two groups.
The survey clearly indicates that families with children are under greater financial pressure in today’s housing market, prompting increased reliance on familial support. As housing costs continue to climb, this trend may persist, affecting the dynamics of homeownership and family financial planning.
Source: Floridarealtors
