T
he American housing market's challenges have led to a rise in "nepo-buyers," adult children who receive help from their families to purchase homes. This phenomenon is driven by rising home prices, higher interest rates, and increased costs of insurance and maintenance. According to Ruthie Assouline, a real estate expert at Douglas Elliman, nearly every first-time homebuyer she's worked with has had some form of parental involvement.

    Assouline notes that parents are often empty nesters who have already established their careers and financial stability. They're helping their adult children by providing down payments, mortgage co-signs, or even entire homes and condos. This assistance can range from a few thousand dollars to the full purchase price, depending on the family's circumstances.

    While some may view nepo-buyers as having an unfair advantage, Assouline argues that parental involvement is empowering young adults to make informed decisions about their purchases. It also helps them build personal equity and secure their own homes in a competitive market.

    However, there are potential downsides to consider. Some co-ops may ban parental support, and receiving help from family members can create strings attached or even familial conflict. Despite these challenges, Assouline remains optimistic about the housing market's future, citing increasing inventory and opportunities for first-time buyers not seen in five years.

    As Assouline puts it, "This is your chance to build your future so that in 20 years from now, when we're in a housing crisis like this again, you'll be able to be that parent to your nepo-buyer in the future."