First-Generation Homebuyers Have Their Parents to Thank: BofA Study
The key takeaway from Bank of America’s 2021 Homebuyer Insights Report is that family is more important than ever when it comes to many first-generation homebuyers. Twice as many new homeowners (43%) say they bought a house because they felt expected by their parents to do so—compared to only 20% of non-first-generation homeowners.
For some, family ties go further. Seventy-five percent of respondents say they were taught the importance of building good credit, and more than a third (37%) received financial assistance from their parents to aid in the homebuying process. However, prospective buyers still face challenges with their financial journey.
Just 24% of respondents say they’re proud of their credit score, and almost nine out of ten say they could do more to save money (89%).
The report also finds that over 60% of first-generation homeowners value the importance of building equity (61%) and owning a home (69%). This is evident in Bank of America’s findings as prospective homebuyers claim that, if given $20,000, they would save for a home (35%) above paying off debts (22%), saving for the future (17%), or buying a car (11%).
‘Hopeful homebuyers are more eager than ever to swap unpredictable monthly rents for steady monthly mortgage payments.’ — AJ Barkley, Head of Neighborhood and Community Lending (@AJBARKLEY1 on Twitter)
Homes are not only a good investment for the future, but also provide what 73% of first-generation homeowners value greatly: safety and security. However, buying a home is not what it used to be for the respondent's parents.
TOP BARRIERS TO HOMEOWNERSHIP
Although many are saving for the day they can purchase a new home, over half of first-generation homebuyers point to high costs of rent (57%) and expensive housing prices (54%) as the biggest barriers between them and making a down payment.
When all is said and done, however, most first-generation homeowners say they expect to buy another home in the future (74%) despite the hurdles and challenges that come with it.
For the complete findings from the 2021 Homebuyer Insights Report, download the 10-page PDF by clicking the “Download Report” button below.