Having the due diligence to put away and save money might be one of the hardest things anyone can do – so how are millennials putting money in their piggy banks so they can purchase their future homes?
Are they doing it through second jobs? Through family help? By selling “Avengers Endgame” tickets?
According to Redfin’s recent survey, 72% of millennials are allocating for their down payments through money saved from their paychecks.
Redfin comments, “The fact that millennial homebuyers are increasingly able to save money for a down payment and becoming less reliant on non-traditional funding methods likely has to do with the fact that wage growth for American workers hit a 10-year high in February after several years when wage growth fell far short of home price growth.”
They compare the survey to a similar one they conducted last year.
Here are the findings for “how millennial buyers save for a down payment”:
|Saving directly from paychecks||69%||72%|
|Earnings from a secondary job||36%||24%|
|Cash gift from family||24%||18%|
|Sold stock investments||13%||9%|
|Pulled money out of a retirement fund early||13%||7%|
|Contributed less to retirement savings||12%||6%|