Nepo-homebuyers? Nearly 1 in 4 young Americans use family money to fund down payment
2025 U.S. real estate predictions
Zillow predicted a more active market with additional inventory for 2025, giving buyers more room to negotiate. However, homebuyers should expect some turbulence with fluctuating mortgage rates, even as more homes become available. Alana Mann, President of The Statesman Group of Companies, joined LiveNOW from FOX to discuss.
A new survey reveals that nearly one-quarter of Gen Zers and millennials, who recently bought a home, used either a cash gift from family or an inheritance to help fund their down payment.
Real estate company Redfin surveyed more than 2,000 recent buyers in May and specifically analyzed young homebuyers for the report. "Young" homebuyers referred to millennials or Gen Zers; there were 700 young recent buyers who took the survey.
Young people using family money to help purchase home
By the numbers:
According to the data, 24% of young Americans used family money to help fund their down payment.
Roughly one in five (21%) Gen Zers or millennials, who recently bought a home, used a cash gift from family to help with their down payment, and roughly 11% used an inheritance.
FILE: Sold sign at house. (Credit: Artur Widak/NurPhoto via Getty Images)
There were also other ways Gen Zers and millennials received help from family: About 18% reported they lived with family or friends to save money for their down payment.
More than half (57%) of young buyers saved directly from paychecks to make their down payment, making it the only method young homebuyers cited more often than cash gifts from family.
Survey asking how money is accumulated for down payment
Young buyers also used cryptocurrency, sold stock investments
By the numbers:
In addition, more than one in 10 (12.7%) young recent buyers used cryptocurrency to help fund their down payment, and 20.4% sold stock investments.
Retirement funds also contributed to down payments: 12.3% of Gen Z and millennial buyers pulled money out of retirement accounts early, and 10.5% contributed less to retirement.
"We asked survey respondents how they accumulated funds for their down payment because for many Americans, it’s difficult to afford to buy a home," Redfin wrote in their report. "The median U.S. home-sale price, and the median monthly mortgage payment, are both near record highs. And while wages are rising, they aren’t rising as quickly as housing costs."
Typical down payment up 7.5%
Big picture view:
The typical U.S. homebuyer’s down payment was roughly $63,000 as of 2024, up 7.5% from a year earlier. That’s equal to 16.3% of the typical home-purchase price.
"People need to live somewhere, and living somewhere costs money. The problem right now: housing costs too much for a lot of people," said Dan Close, a Redfin Premier agent in Chicago.
"Some of those people live with their parents, and some are lucky enough to get help from their parents for a down payment and/or their monthly housing payments. In cases where that’s an option, it’s not a bad time to buy and start building equity because it’s a buyer’s market and lots of sellers are giving concessions."
Best housing market for first-time homebuyers is in Texas
Dig deeper:
Another study, released last month, found that McAllen, Texas was the best metro area for first-time homebuyers in 2025. After ranking fourth last year, McAllen replaced Lawton, Oklahoma as the number one metro area.
According to the data, McAllen offered positive projected home-price growth over the next year, moderate affordability with the median sale price of $204,499, and a market that allows potential buyers to take their time to make a decision before putting in an offer.
RELATED: These are the best housing markets for first-time homebuyers in 2025
Meanwhile, Peoria and Decatur, Illinois ranked first and second in the affordability metric, with local home sale prices averaging about twice the amount of the median annual income.
Davenport, Iowa; Springfield, Illinois; Lawton, Oklahoma; Cedar Rapids, Iowa; St. Joseph, Missouri; and Muncie, Indiana metros were also among the least expensive.
The Source: The information for this story comes from a survey by Redfin, published on July 14, 2025. The company surveyed more than 2,000 recent buyers in May 2025, analyzing young homebuyers. "Young" homebuyers referred to millennials or Gen Zers; there were 700 young recent buyers who took the survey. This story was reported from Los Angeles.