Home ownership has long been a measuring stick of success in life as those able to buy are generally considered as having a good job and being financially responsible. But a recent study has revealed that more goes into getting a house than just having stability. Specifically, those that have financial help from their parents are more easily able to buy a home than those without assistance from family. The study looked at those between age 20-49 that had been renters one year and owners the next. It found that receiving at least $5000 from parents in the previous two years increased the likelihood of buying by %23. In addition, the author’ found that race played a difference when it comes to home ownership and parental support which they tie to the historical housing market discrepancy between groups. The author’s also expressed concern that the ability for younger generations to purchase homes without help could lead to problems for Baby Boomers who expect to sell their houses but may end up hurting to find buyers. But only time will tell what the future of the housing market for younger generations might be.
See Emily Badger, How your parents affect your chances of buying a home, The Washington Post, May 4, 2016.
Special thanks to John Stromeyer for bringing this article to my attention.
