`Nepo homebuying` isn`t as popular as it used to be. That`s actually a bad sign for the US real estate market.


`Nepo homebuying` isn`t as popular as it used to be. That`s actually a bad sign for the US real estate market.
Nepotism is a hot topic these days: So-called "nepo babies" seem to be everywhere, riding the coattails of their rich and famous parents to land starring roles in movies, record Billboard hits, and wield power in Washington. The housing market isn`t Hollywood, but as long as families have had a few dollars to pass down from one generation to the next, youngsters have relied on help from parents to get their foot in the door. Over the past three decades, about 30% of first-time homebuyers each year used a gift or loan from family and friends, data from the National Association of Realtors shows. For buyers of all types, family swooped in to help about 16% of the time. Conditions would appear ripe for nepo buyers` numbers to spike — with prices high and borrowing rates still steep, lots of home shoppers could use a hand. Many baby boomers are sitting on piles of home equity or bulging investment portfolios that they could theoretically tap to aid their millennial and Gen Z offspring. Yet the nepo homebuyer is actually in decline. The past few years of NAR data have shown a significant dip from the historical average: In 2024, only a quarter of first-time buyers got help from friends and family. For all buyers, this share has slipped to just 10%... ...more RSK: Some very interesting information here. What struck me is the average age of the first time home buyer is now 38!
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Nepotism is a hot topic these days: So-called "nepo babies" seem to be everywhere, riding the coattails of their rich and famous parents to land starring roles in movies, record Billboard hits, and wield power in Washington. The housing market isn`t Hollywood, but as long as families have had a few dollars to pass down from one generation to the next, youngsters have relied on help from parents to get their foot in the door. Over the past three decades, about 30% of first-time homebuyers each year used a gift or loan from family and friends, data from the National Association of Realtors shows. For buyers of all types, family swooped in to help about 16% of the time.

Conditions would appear ripe for nepo buyers` numbers to spike — with prices high and borrowing rates still steep, lots of home shoppers could use a hand. Many baby boomers are sitting on piles of home equity or bulging investment portfolios that they could theoretically tap to aid their millennial and Gen Z offspring. Yet the nepo homebuyer is actually in decline. The past few years of NAR data have shown a significant dip from the historical average: In 2024, only a quarter of first-time buyers got help from friends and family. For all buyers, this share has slipped to just 10%...

...more

`Nepo homebuying` isn`t as popular as it used to be. That`s actually a bad sign for the US real estate market.

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