The real estate market has experienced a slowdown in the past two years with rising mortgage rates, high costs and low inventory. But despite those barriers, millennials are expected to keep buying homes—with help from mom and dad.

A new report by U.K.-based Legal & General Group says if it really were a business, the "Bank of Mom and Dad" (BoMaD) would be a top 10 mortgage lender, the seventh biggest in the U.S. BoMaD lends or gives $47 billion to help others purchase a home.

Although parents dish out the lion's share (72 percent), the report found that grandparents and other family and friends play a part in helping loved ones buy their own home. And the sums they offer are substantia—an average of $39,000 each. The money is most commonly given as a gift, or sometimes as an interest-free loan, the report noted.

Family and friends, the report says, supported the purchase of $317 billion worth of U.S. property in 2018. That’s 1.2 million homes, with one in five U.S. homeowner receiving gifts or loans to help them buy.

“Many “lenders” are giving until it hurts—putting off  retirement or accepting a lower standard of living in their golden years to help the next generation. But we can celebrate that generosity while worrying about the need for it. For many, perhaps most, young adults, buying a home without help is increasingly unaffordable,’’ the pollsters pointed out. 

According to the Federal Housing Finance Agency, the average home prices in the  second quarter of 2018 was almost $310,000. That compares to a peak of $257,400 before the 2007 financial crisis. Following a slump in the years after 2007, home prices have been rising since 2012, at an annual clip of more than 4 percent over the last five years. In the first half of 2018, prices grew at more than 6 percent, the report noted.

More than half (51 percent) of prospective owners under the age of 35 now expect to have help to buy from family or friends. Of those who have already bought, a similar proportion say they would have had to delay buying for at least three years without help. With median housing prices in the U.S. at over $300,000 for most of the last three years, the deposit required to buy puts home ownership out of reach for increasing numbers of people.

Financial advisors, however, caution parents against giving money for home purchases without having a secure plan. “The analogy that comes to mind is the message the flight attendant gives prior to take off: "If you are traveling with a child or someone who requires assistance, secure your mask on first, and then assist your child.’’ said advisor Robert Greenman of Vista Capital in Portland, Ore. “The appropriate step would be to sit down with their advisor to see if their assets, spending needs and sources of income provide them with the flexibility of helping their children today as opposed to leaving them with an inheritance in the future,’’ he said.

Sarah Graham of VLP Financial Advisors in Vienna, Va., said she would advise the parents to first speak with a CFP professional to determine how the giving would affect their retirement plans. Depending on the situation, it could cause the parents to delay retirement by months or even years,’ she said.

Indeed, the report found that 7 percent say they actually had to postpone retirement in order to help a young loved one. Fifteen percent said they had to accept a lower standard of living; 14 percent said they felt less secure about their own future due to their efforts to help loved ones.    

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