How do family dynamics impact influence homeownership?
A recent Bank of America Homebuyer Insights Report found that homeownership and family tend to go hand-in-hand. Now, not only do parents need to be enamored with a home, but so do their children, both young and adult.
Sixty-three percent of homebuyers reported that their children are involved on deciding what type of home to purchase. Nearly three-quarters of first-time buyers reported this, compared to 58 percent of current owners. And it’s not just younger children. As more adult children move home, or continue to reside with their parents, most are probably saving more than they bargained for. The majority -64 percent- of parents who have adult children, or “boomerang kids,” at home do not charge them for rent or monthly bills to live with them.
Homeownership is defined as family, according to 53 percent of current homeowners and 47 percent of first-time buyers, but 88 percent of current owners and 84 percent of first-time buyers reported they do not expect an extended family member to move in. However, many homeowners and future buyers said they would consider relocating to a different home or updating their current home so that a family member could reside with them. Sixty percent of Generation X, 58 percent of millennials and 47 percent of baby boomers felt this way.
Ultimately, 46 percent of first-time buyers, and 26 percent of current owners (32 percent of all homebuyers), reported they will move closer to family. So, maybe location, and family, is key for these homebuyers.