Study: More millennials depend on 'The Bank of Mom and Dad' to buy homes
Family and friends played a major role in the US housing market, supporting the purchase of $317 billion worth of property across America last year, and putting the "Bank of Mom and Dad" (BoMaD) in the top seven of the largest housing lenders in the US, according to Legal & General Group's new report.
BoMaD lenders supported the purchases of approximately 1.2 million homes, giving or lending an average sum of $39,000.
"For many, perhaps most, young adults, buying a house without help is an increasingly unattainable goal," said Legal & General Group Chief Executive Nigel Wilson. "More than half of prospective homeowners under the age of 35 now expect to have help from family or friends to buy a home; this is worrisome from several standpoints.
"For many, perhaps most, young adults, buying a house without help is an increasingly unattainable goal," said Legal & General Group Chief Executive Nigel Wilson. "More than half of prospective homeowners under the age of 35 now expect to have help from family or friends to buy a home; this is worrisome from several standpoints.
"Over half of parents and others helping finance home purchases that we surveyed agreed that it is harder for younger generations to get onto the property ownership ladder than it was for them," he said. "While they cited the failure of income to keep up with the cost of living (64%) and high rents (49%) as reasons for this generational difficulty, the larger issue was property prices, which nearly three-quarters of BoMaD lenders say have risen to a point where they are unaffordable."
I'm seeing a lot of articles about how the "Bank of Mom & Dad" may be the only bank that millennials truly trust.
Why Millennials are Leaving Your Bank (And How to Stop Them)
This is important because we're about to witness the largest wealth transfer in history.
Preparing for the Wealth Transfer Tsunami
Peter Harvey is an expert in marketing strategies and market intelligence. He's the CEO of Intelli-Global
and has been studying the looming wealth transfer tsunami.
Tactics to capture the $38T shifting from Baby Boomers to Millennials