Many millennials rely on family support to buy first home

by Tanya Marchiol

The real estate market has shown home price increases continue to outpace income growth, so it comes as no surprise that millennials are willing to accept financial assistance to achieve their American Dream. A new Apartment List report found that 17.1 percent of first-time homebuyers expect financial assistance from family support to make a down payment.

The housing market has outpaced average incomes for decades — since 2000, home prices have increased 2.4 times more than incomes in homes owned by someone younger than 35.  Apartment List also found that in that time, home prices have increased by 73 percent, while incomes have only increased by 31 percent.

Of the 17.1 percent in the study who expect financial assistance from family, about 33 percent expect about 30 percent or more of their down payment. Many expect larger sums, nearly 15 percent expect $10,000 or more from family members, 4 percent expecting $40,000 or more from family assistance.

In Boston, 19.3 percent of buyers count on down payment assistance, while 5.5 percent receive assistance for rent every month.

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