New Study Examines Impact of Parental Money on Millennial Home Buying
The probability of becoming a homeowner jumps 23 percent among adult children who receive a money transfer from their parent, according to a new report based on data from the Health and Retirement Survey. Receiving money from one’s parents—defined as a gift of $5,000 or more over the last two years, assistance received by 1 in 17 young adults between ages 20 and 49—help many get over the hurdle of making a down payment, the biggest obstacle to homeownership, according to half of young renters. The paper noted that children with parents in the 4th quartile of the wealth distribution are 4.5 percentage points more likely to become homeowners than children with parents in the bottom quartile. They also determined that age and race can play a significant role.