Key facts
- Coldwell Banker's September survey found 82% of parents with children 5 and under are saving or considering saving for a down payment.
- Fourteen percent of surveyed parents had already saved for a child's down payment, versus 20% for college.
- The Atlanta Fed's affordability measure put the income needed for homeownership at $126,849 as of August, 32% above median household income.
- Redfin data showed 929,000 buyers and 1.5 million sellers in September, with about 20% of listings having a price cut.
A September survey by real estate brokerage Coldwell Banker found that 82% of parents with children aged 5 and under are already saving or considering saving for their child's down payment, according to a report that did not date the event. Fourteen percent of surveyed parents said they had already done so, compared with 20% who had already set money aside for their child's college education.
Mary Lee Blaylock, president of Coldwell Banker Affiliates, said the trend reflects young parents who have recently bought homes and understand how expensive ownership is. Most Gen Z and millennial parents surveyed said they had considered or begun saving.
The report cited a 30-year fixed mortgage rate above 7% for the week ending October 29. It also cited Atlanta Fed data showing that, as of August, a qualified income of $126,849 was needed for homeownership to take no more than 30% of annual income, a standard affordability measure, while median household income was 32% lower.
Domonic Purviance of the Atlanta Fed's Supervision and Regulation Division said that making the median income or less was historically enough to buy a home, but that this is less likely now.
Redfin data cited in the report showed about 20% of active listings in September had a price cut, up 0.4 percentage points from a year earlier, and 929,000 buyers compared with 1.5 million sellers. Amanda Peterson, a Redfin Premier agent, said builders were offering $10,000 or $20,000 in concessions, buying down mortgage rates and including appliances.
The Coldwell Banker survey also found that 15% of homeowners received down payment money from family or friends, and 71% of those who received it expect to pay it back. Blaylock said people still need to save for a down payment and cannot rely only on help from others.