Welcome to the 'nepo' housing market: 40% of homebuyers under 30 get family money to cover their down payment
Welcome to the 'nepo' housing market: 40% of homebuyers under 30 get family money to cover their down payment
Redfin chief economist Daryl Fairweather: "It seems like the only way to kind of get your foot in the door to the housing market is to have some help"
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Well I’m pretty mad that I’ll never be able to afford a house, despite having a good solid job. My parents aren’t rich, so they can’t help me. And while I’m not mad at them for not being able to help, I am mad that all other things being equal that puts me at a disadvantage.
Here’s a hypothetical scenario: Let’s say I make $60K a year, am single, with significant student debt. Let’s also say because of the pandemic payment pause, maybe I was able to save, like $5K, and I want to buy a house. Not gonna happen. Now take all the same things but add in well-off parents who could help with a down payment. That hypothetical person gets a house. They have a definite advantage. To me, that’s not just unfair, it perpetuates a system of wealth transfer that only helps part of the population. Everyone should have the same opportunity to own a home, if they want to.
Don't forget the tightening of lending rules going on. Even if you have the down payment, most will not qualify for the mortgage unless they have some one co-sign (bank thinks you can't pay $1000 mortgage, so you have to pay $2000 rent).
Good point. I’d never get approved for a mortgage on my own, so I’ll be stuck paying rent that’s more than any normal mortgage payment. It’s so clearly rigged against me and people like me.
The funny thing is if you incorporate your company can get a mortgage as long as you can show income though rent (you can list yourself as one of the renters for some reason). The rates are crap, but you can get one.
This seems to encourage more landlords over general ownership.