How Millennials Save Up to Buy a Home

Millennial first-time homebuyers' purchasing power on the market is increasing, yet being able to save up enough for a down payment remains a top concern.

In great numbers these homebuyers struggle with saving up a down payment, affording a home in a favored neighborhood, and rising home prices. To achieve their buying goals, Millennials who did not save directly from their paycheck supplemented their income to save up enough for a home by getting a second job, pulling money out of retirement early, and selling cryptocurrency. Others had received a cash gift or inheritance. Sheharyar Bokhari, senior economist at Redfin says of the survey results, “they reveal some of the inequalities that have been exacerbated since the recession, with the well-off having more flexibility and thereby ability to become homeowners and build more wealth, through advantages like financial support from family and the opportunity to invest in the stock market.”

In March, Redfin commissioned a survey of 2,000 U.S. residents who planned to buy or sell a primary residence in the next 12 months. The purpose of the survey was to better understand the objectives, perspectives and concerns of those about to enter the real estate market. We focus this report on the more than 500 respondents between the ages of 24 and 38 who said they planned to buy their first home home in the coming year.

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