• Trulia released its latest study about homeownership trends. The study, entitled "Family Tradition: Kids Are More Likely to Own a Home If Their Parents Did," delves into the influence of parents on their children's renting and buying practices.
  • According to the study, children are three-times more likely to buy a home if their parents were homeowners.
  • According to Trulia, this revelation could explain weak millennial homeownership rates. Millennials, ages 19 to 34, are less likely than people of other generations to have grown up in a home owned by their parents.
  • This study is on the heels of the lowest homeownership rate (62.9 percent) since 1965. This is part of a continuing decline that started in 2005.

There’s no question that fewer people are buying homes today than they did over the past few decades. The Census Bureau released a preliminary national Q2 2016 homeownership rate — 62.9 percent, the lowest recorded since 1965.

But the real estate industry is still piecing together the “why” of this trend.

Academic researchers, economists and real estate experts alike have been trying to pinpoint the cause, and there has been a particular focus on millennials.

This demographic was expected to bolster rates but hasn’t due to exorbitant student loans and low salaries.

But, Trulia’s newest study, “Family Tradition,” suggests that we look at millennials’ parents to find the source of the homeownership decline.

According to the study, homeownership is strongly influenced by family. So much so that children of parents who owned a home are three times more likely to own as they reach adulthood.

This trend strengthens as children get older and make more money (a 40-year-old who makes $100,000 and grew up in a home owned by their parents has a 79 percent chance of becoming an owner).

FamilyTradition_Persona_v09

But, as Trulia notes, this trend reveals a new factor that makes what’s happening to millennials much clearer.

Compared to Gen Xers, millennials are less likely than people of other age groups to have grown up in a home owned by their parents.

“This suggests that millennials could be less likely to own a home when they reach prime homebuying age even before considering student debt burdens and lower wages for those who hit the labor market during the recession,” says the study.

In addition to homeownership rates, the study found that parents also influence their children in other ways:

  • Among people of the same age and household income, those that were raised in homes that their parents owned are 2.9 times more likely to own themselves as those that were raised in homes that their parents rented, after excluding anyone who received financial help from their parents.
  • If you’re 27, don’t still live with your parents, and live in a lower- to middle-income household, the chances you own your home are greater (25.8 percent versus 10.7 percent) than your counterparts who grew up in a rented home.
  • Among those that grew up mostly in owned homes, 58.3 percent have received some kind of financial assistance from their parents compared to just 32.3 percent for those who grew up in primarily in rentals. More than one out of 10 adults, 11.4 percent, whose parents owned have received assistance from them with a down payment while just 2.6 percent who grew up in rental housing got down payment assistance.
  • 53.1 percent of millennials (ages 19 through 34) grew up in owned households, compared with 58.9 percent of those aged 35 through 45.

Although real estate professionals are hoping homeownership rates will rebound — especially for millennials — the study says the industry should prepare for the reality that current rates could become the new normal.

Email Marian McPherson

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×