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First-Generation Homebuyers Have Their Parents to Thank: BofA Study

A recent report from Bank of America shows how the family unit both prepares and assists first-generation owners in buying their first home.
First-Generation Homebuyers Have Their Parents to Thank: BofA Study ConstructUtopia

Twice as many new homeowners say they bought a house because they felt expected by their parents to do so, according to a new Bank of America study. Photo courtesy BofA

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.