Nepo-homebuyers are on the rise. Charlotte parents say how it works
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Axios Charlotte reader MaryLu Cinque is one of many parents who have helped pay for their child's home.
Why it matters: As housing costs soar, 26% of younger people who recently bought homes say they used family cash for down payments, up from 23% last year, according to Redfin research.
What they're saying: "We were fortunate enough to contribute to all three kids' first home down payment," Cinque tells Axios. "We are Boomers and I think this is a more common thing for our generation. I don't have much hope for future generations to have such disposable income."
- Several other Axios Charlotte readers tell us their kids would not have been able to afford a down payment on their own.
- Susie Verrill, a Real Estate Broker at NextHome Paramount and Axios Charlotte subscriber, says she sees a lot of first-time home buyers receiving help with their down payment from family/parents — herself included.
By the numbers: The median down payment on a Charlotte-area home is $40,942 Realtor.com data shows.
- That's up from $21,538 in early 2021.
The latest: Some couples looking to purchase homes are asking loved ones for cash instead of traditional baby or wedding gifts.
- Aspiring buyers, like Axios Charlotte subscriber Angela Snyder, will also receive funds this holiday season to put toward a downpayment.
- Snyder, a Millennial in her early 30s, hopes to buy her first home in the next few months with help from her parents. She hopes to put down 20% to avoid the extra cost of private mortgage insurance and anticipates about half of the down payment coming from her parents.
- "I know I could save money by going out farther into the outskirts or suburbs but I don't want that," Snyder says. "Location is important to me."
Reality check: Those "who don't have family money are often shut out of homeownership," Redfin chief economist Daryl Fairweather said in a research report.
- In time, this could widen the homeownership gap between Black and white families, an Urban Institute analysis suggests.
What's next: President-elect Trump's proposals to blunt the high cost of housing include easing construction regulations and making more federal land available for development.
- But experts say there is no quick fix for the challenges plaguing the home market.
The bottom line: Not every parent can contribute to their kid's downpayment. For many, it's not feasible. But several readers we spoke with shared a similar sentiment: They'd rather see their kids enjoy their inheritance now while they're alive to see it.