T
he American housing market's challenges have led to a growing trend of "nepo-buyers," adult children who rely on their families for financial assistance in purchasing homes. This phenomenon is driven by rising home prices, higher interest rates, and increased costs associated with homeownership.

    According to Ruthie Assouline, a real estate expert at Douglas Elliman, many first-time homebuyers are turning to their parents or family members for help. In fact, almost every buyer she's worked with in this demographic has had some form of parental involvement. This can take the form of gifted down payments, mortgage co-signs, or even entire homes and condos.

    The 30% rule, which limits mortgage expenses to no more than 30% of monthly income, is becoming increasingly difficult for many households to achieve. A recent report found that only three out of America's top 50 metro areas have affordable housing options where median-income households can purchase a home without exceeding this threshold.

    The National Association of Realtors reports that the median age of first-time homebuyers has reached 38, and a Redfin study found that 38% of homebuyers under 30 used cash gifts or inheritances for their down payment. Parent-driven purchases are playing a significant role in keeping the housing market active, particularly at entry-level price points.

    Assouline notes that empty nesters with established financial status often help their adult children achieve homeownership by providing support with down payments, maintenance fees, and other expenses. This can give young buyers an advantage in competitive markets, where stronger terms can increase the likelihood of securing a property.

    While there are potential drawbacks to nepo-buying, such as co-op restrictions on parental support and familial conflict, Assouline believes that the benefits outweigh the risks. She argues that parental involvement empowers children to make informed decisions about their purchases and helps them build personal equity in their homes.

    As the housing market continues to evolve, Assouline remains optimistic about increasing inventory nationwide, creating opportunities for first-time buyers not seen in five years. With more buyer flexibility and sellers becoming more amenable to negotiations, this may be a prime time for those without parental involvement to enter the market and build their future.