Last summer, after years of bouncing from rental to rental, Brianna Racoosin bought her dream home, a sunny two-bedroom condo in East Williamsburg, Brooklyn. To cover the $1.1 million price tag, Ms. Racoosin, an art teacher at a public high school, didn’t take out a mortgage; she paid in cash, thanks to a trust set up by her parents.
“I never thought that I would use the money to buy until I had a partner or a family,” Ms. Racoosin said. “But then I was like, what’s the point of waiting?”
While generational wealth may be a subject of contempt, and envy, Ms. Racoosin, 30, is far from alone when it comes to relying on family money to get a leg up in the housing market. About one in five Generation Z and millennial home buyers in the United States relied on gifts from family to help with their down payment, according to a study released by Redfin last month.
“A lot of people don’t want to talk about gifting, even though everyone has help,” said Danielle Nazinitsky, an agent with Decode Real Estate who worked with Ms. Racoosin.
In a historically tight housing market, parental support can help put homeownership within reach. Still, there’s a lot to consider before you turn to the Bank of Mom and Dad. Here’s what you need to know.
Why are home buyers turning to their parents?
A perfect storm of factors is making it especially difficult for prospective homeowners in the millennial and Gen Z age groups to buy using entirely their own means.
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