Millennials Relying on Family for Home Purchases
According to a recent survey conducted by the Endeavor America Loan Services, millennials are relying on family in order to purchase homes. Over 5,000 millennials were surveyed (average age of 28) on their experiences buying a home and the resources they used for funding their purchase.
The results showed that 20 percent of millennials relied on family for some sort of financial assistance from a family member, while 41 percent relied on a co-buyer so they could qualify for financing.
On average, millennials took out loans of $182,879 (loan to value of 95.4 percent), and an average down payment of 4.6 percent.
The survey also showed that single family homes are still the most commonly purchased properties (70 percent), with condos and townhomes coming in second (18 percent).
“Millennials are maturing, recovering from the recession and forming families,” said Darius Mirshahzadeh, CEO of Endeavor. “They also invested heavily in higher education and are growing in their careers. All of these factors point to what we are now seeing, millennials flooding into the housing market.”