I
n a surprising twist, Gen Z Americans are finding creative ways to enter the housing market despite soaring home prices and high mortgage rates. A significant number of young buyers are receiving cash gifts from family members to help fund or cover their entire down payment, earning them the label "nepo-buyers." This trend is particularly prevalent among Gen Z homeowners, who make up the largest demographic of recipients.

    San Antonio, Texas, has emerged as a hotspot for these young buyers. With its affordable housing options and remote work opportunities, the city has become an attractive destination for those seeking to break into the home market. In 2024, Gen Z accounted for over 14% of mortgage applications in San Antonio, where the median home price is a relatively modest $293,000.

    Experts point out that while San Antonio's affordability is a major draw, the influx of young buyers could also lead to increased demand for housing and higher living costs. However, Ashley Massey, a global real estate advisor, notes that the city offers more than just affordable housing – it has a vibrant culture, walkability, and a lively nightlife.

    San Antonio's transformation from one of the poorest major cities in the US to a thriving hub is largely due to its ambitious development plans aimed at attracting young people. The city's appeal extends beyond affordability, with job opportunities, no state income tax, and a relatively low cost of living making it an attractive option for Gen Zers.

    The trend of parents contributing to down payments is also on the rise in San Antonio, as many want to help secure their children's futures in an affordable housing market. This phenomenon has led to concerns about wealth inequality, with young Americans who don't have family money often being shut out of homeownership.

    According to Redfin chief economist Daryl Fairweather, "The bigger problem is that young Americans who don't have family money are often shut out of homeownership." He notes that the housing affordability crisis has made it harder for young people to gain economic ground on their peers from more privileged backgrounds.