The Risks of Relying on 'the Bank of Mom and Dad' for First-Time Homebuyers
The National Association of Home Builders CEO, Jim Tobin, warns that first-time homebuyers are increasingly relying on financial assistance from their parents to afford a home due to high demand and limited supply. A survey by Redfin found that 38% of recent homebuyers under 30 used cash gifts or inheritance from family for down payments. Tobin believes that in the current housing market, "anything goes" to get deals done, and underwriters are more concerned with repayment ability than the source of the down payment. The CEO also highlights the need for the Federal Reserve to halt interest rate hikes and increase housing supply to address rising home prices.