The share of first-time homebuyers who ask family and friends for help in purchasing a home has declined, as more millennials in the US are determined to pay for mortgages on their own.
Over a third (31%) of millennials said they had intentions to work a second job to pay for their mortgage, up from 29% in 2018, according to a Redfin-commissioned survey in March.
“Over the last couple years, millennial household incomes have been rising, and America’s youngest professionals now earn more than previous generations did at this age,” said Redfin Chief Economist Daryl Fairweather. “As a result, they’re needing less and less help from family members to buy a home.”
Among millennials, only 7% planned to seek help from parents or another family member, down from 14% in 2018. Moreover, the percentage of those who intend to co-own a home with someone other than their spouse or partner was 10% in March, down from 17% last year.
Meanwhile, 11% said they planned to get a roommate to help pay for their mortgage, down from last year’s 14%. And this year, only 10% of millennials were willing to rent out their home on a vacation rental site like Airbnb or VRBO.
“A lot of that increase in millennial household earnings has been driven by millennial women, who are working more and earning more than women of previous generations,” Fairweather said. “Millennials may have postponed getting married, having children and buying a home while they got their careers on track, but now that they are more established in their careers and earning more, I expect to see more millennials buying homes and checking off those major life milestones.”