Nearly 25% of young homebuyers get money from mom and dad

When it comes to buying their first homes, some young Americans are working hard to buy them — while others are leaning on their families.

Faced with steep prices and high interest rates, nearly a quarter of Gen Z and millennial homebuyers are turning to family for help with down payments, according to a new report from Redfin. 

Roughly 24% of recent buyers in these age groups used gifted money or inheritance to bridge the affordability gap — often in combination with other creative funding sources.

The findings, based on a survey of 700 recent Gen Z and millennial homebuyers, reveal a generation cobbling together down payments from a patchwork of personal and family assets. 

About 20% sold off stocks, while 13% cashed in on cryptocurrency earnings.

Another 12% drew from retirement savings — despite penalties for early withdrawals. The trend highlights a growing willingness among younger buyers to prioritize homeownership over long-term financial vehicles once considered untouchable.

While older generations have typically used proceeds from a prior home sale to fund the next — 36% of Gen Xers and 25% of boomers cited that strategy — today’s young buyers are often first-timers with no such cushion. 

Still, some have managed to pull equity from other properties, indicating that a surprising number already own more than one home or have leveraged ownership creatively.

Cutting expenses remains a common strategy: 18% lived with family or friends to save up, 17.6% took second jobs and over 12% reduced their retirement contributions. 

Yet even with these efforts, overall homeownership rates among young Americans remain below historical levels. As of 2024, just 26% of older Gen Zers and 55% of millennials owned homes — trailing their Gen X and boomer predecessors at similar ages.

The data paints a picture of a generation willing to sacrifice — and improvise — to get a foot in the door. Whether those bets pay off in the long run remains to be seen.