Navigating Today's Housing Market: The Rise of 'Nepo-Homebuyers

Lisa Mailhot  |  November 14, 2023


Navigating Today's Housing Market: The Rise of 'Nepo-Homebuyers


In today's competitive housing market, aspiring homeowners are facing unprecedented challenges when it comes to affording their dream homes. Skyrocketing home prices and soaring mortgage rates have made it increasingly difficult for many to secure their place in the real estate market. If you're one of those individuals feeling the pinch, you're not alone. According to a recent Bankrate report, almost 75% of prospective homebuyers identify affordability as their primary hurdle in the home-buying process. 

So, what's the solution for those who find themselves priced out of the market or struggling to come up with a hefty 20% down payment? The solution may be closer to home than you imagine. In this blog post, we'll explore the increasing trend of "nepo-homebuyers" - people who rely on their families for financial help to achieve their dream of owning a home.

The Bank of Mom and Dad

As the housing market continues to evolve, many first-time buyers are cobbling together their down payment from multiple sources. While some rely on their hard-earned savings, others turn to a more privileged network – their family and friends. According to Zillow, approximately 40% of homebuyers now tap into the "bank of mom and dad," a significant increase from pre-pandemic levels.

This shift highlights the growing importance of family support in the journey to homeownership. With soaring home prices, many individuals find that their own resources simply fall short of the mark. Financial assistance from parents and relatives has become a crucial lifeline for countless prospective buyers.

The Rise of Nepo-Homebuyers

To bridge the affordability gap, a growing number of younger house hunters are now classified as "nepo-homebuyers." These individuals rely on family contributions, be it a cash gift or an inheritance, to secure their down payment. According to Redfin, nearly 40% of recent homebuyers under the age of 30 used family funds to make their homeownership dreams a reality.

Exploring Other Options

While it's clear that many individuals are turning to their families for support, it's essential to remember that a down payment isn't the only factor in securing a home. Jacob Channel, a senior economist at LendingTree, advises potential buyers not to be disheartened if they don't have a substantial down payment ready.

Traditional standards often dictate a 20% down payment as the ideal, but various options exist to accommodate those with different financial situations. Federal government programs, state initiatives, and offerings from banks and credit unions can provide lower down payment requirements or even the option of no down payment at all.


The challenges of affordability in today's housing market are real, but there are solutions available. Whether you're a "nepo-homebuyer" or exploring alternative financing options, the path to homeownership is still within reach. By gaining knowledge of the resources at your disposal and making well-informed decisions, you have the potential to transform your vision of homeownership into a tangible achievement, even in the current competitive real estate environment.


"Nearly three-quarters of aspiring homebuyers say affordability is the No. 1 obstacle to owning a home." (Published on Nov 13, 2023, by Jessica Dickler)

Recent Blog Posts

Stay up to date on the latest real estate trends.


Unlocking Cost-Free Real Estate Marketing Strategies for Maximum Impact

Lisa Mailhot  |  May 17, 2024

Explore five innovative and cost-free real estate marketing strategies that leverage creativity and strategic thinking to enhance your brand's visibility. From network… Read more


The Rise of Tiny Homes as a Game-Changer in Modern Housing

Lisa Mailhot  |  May 16, 2024

Tiny homes are gaining popularity as affordable and eco-friendly housing options, but they come with pros and cons. Explore the tiny house movement and whether it's th… Read more


Practical Steps to Achieve Financial Prosperity

Lisa Mailhot  |  May 14, 2024

Discover effective strategies to build wealth and achieve financial freedom in our latest blog. Learn about setting financial goals, managing debt, and the importance … Read more


Inland Empire Warehouse Market Faces Oversupply, Rents Under Pressure

Lisa Mailhot  |  May 14, 2024

Explore the current challenges and opportunities in the Inland Empire warehouse market, where an oversupply bubble causing downward pressure on rents. Benefit from ind… Read more


Q1 2024 Home Price Surge: Analyzing Metro Market Trends 

Lisa Mailhot  |  May 10, 2024

Discover the latest trends in the U.S. housing market with over 90% of metro areas posting price gains in Q1 2024. Learn which regions are seeing the biggest increases… Read more


The Power of Diversity: Enhancing Real Estate Growth and Success

Lisa Mailhot  |  May 10, 2024

Discover how diversity can drive innovation, strengthen client relationships, boost team morale, and improve brand reputation in the real estate industry. Embrace the … Read more


Unraveling the Top 10 Deal Breakers in Commercial Real Estate

Lisa Mailhot  |  May 9, 2024

Navigating the complex world of commercial real estate can be a minefield, with many possible challenges that can disrupt even the most promising deals. From financing… Read more


How MLSs Are Taking the Reins in Enforcing NAR Settlement Changes

Lisa Mailhot  |  May 8, 2024

Discover the pivotal role of Multiple Listing Services (MLSs) in enforcing the latest commission rules set by the National Association of Realtors (NAR). Learn how the… Read more


Homeownership Dreams Fading for Renters in Orange County

Lisa Mailhot  |  May 7, 2024

The latest Federal Reserve Bank of New York survey has revealed a stark reality for renters in Orange County and nationwide – the prospect of owning a home is becoming… Read more

Let’s Talk

You’ve got questions and we can’t wait to answer them.