Nearly Half of Young People Need Help to Afford a Home

From family assistance to pulling money from their retirement accounts, many young homebuyers are finding alternative means to afford a house
July 14, 2025
3 min read

In many areas of the U.S., home prices are too high to be considered affordable for a large percentage of young people, but they’re finding ways to purchase homes anyway. While 56.5% of recent Gen Z and millennial buyers saved directly from paychecks for a down payment on a house, according to a recent report from real estate marketing platform Redfin, about 23.8% of that buying cohort needed help from their family to purchase a home—mostly in the form of a cash gift—and roughly 11% dipped into inheritance money. 

Not everyone is lucky enough to receive help from their families, but there are other ways to buy a house

Those who need help with a down payment aren't just getting cash assistance from their families. About 18% of Gen Zers and Millennials say they lived with family or friends to save money for their down payment. Additionally, 12.7% of Gen Z and Millennial homebuyers are using cryptocurrency to purchase a home, and 20.4% say they sold stock investments for their down payment.

Retirement funds are also being used to collect money for a down payment, with 12.3% of Gen Z and Millennial buyers saying they pulled money out of retirement accounts early, and 10.5% saying they contributed less to retirement funds in order to save for a home.

However, many young people can't afford a home at all

While some young people are finding ways to enter the housing market, that’s not the case for everyone. Affordability challenges are keeping many would-be buyers at bay, with approximately 18.2% of young people saying they’re unable to save for a down payment. Another 24.7% of young buyers say they can’t afford a home in the area they want to live, and 19.9% of buyers say mortgage rates are keeping them from buying a house.

Both down payments and mortgage payments have grown over the last year, only adding to affordability concerns

 

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