How the ‘Silver Tsunami’ Is Reshaping the American Dream
Summary
A National Association of Realtors report says inheritance is playing a growing role in helping first-time buyers purchase homes amid high prices and borrowing costs. First-time buyers are older than in past decades, while their share of the market remains near a historic low.Key Facts
- Ten percent of first-time buyers said they used an inheritance to fund their home purchase, the highest share recorded in the report and the fourth year in a row it increased.
- The report says 62 percent of first-time buyers used savings, 30 percent used financial assets, and 25 percent used a gift or loan from relatives or friends.
- Inheritance funded purchases for 28 percent of first-time buyers who paid in cash, compared with 9 percent of first-time buyers who financed their homes.
- The median age of first-time buyers is 40, compared with an age in the late 20s in the 1980s.
- First-time buyers make up 22 percent of the market, one percentage point more than last year and below the pre-2008 historical norm of 40 percent.
- Cerulli Associates estimates that $85 trillion will pass to Gen Xers and millennials in the United States through 2048.
- Baby Boomers are estimated to hold about $20 trillion in real estate assets.
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