A new report shows that millennials are no longer depending on help from family members when It comes to saving for a down payment on a home. According to Redfin, seventy-two percent of millennials homebuyers are saving for a down payment from their own paychecks.
This is an increase from the sixty-nine percent from one year ago, as the survey of 2,000 U.S. homebuyers and sellers showed. The company provided a number of ways in which first-time homebuyers could possibly save for a new home and the numbers are pretty surprising.
The results from the survey showed:
Earnings from secondary job: 24% down from 36% last year.
Cash gift from family: 18%, down from 24%
Sold stock investments: 9%, down from 13%
Pulled money from a retirement fund early: 7%, down from 13%
Contributed less to retirement savings: 6%, down from 12%
Inheritance: 6%, down from 12%
"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," according to Redfin.
"The combination of strong wages and the housing market stalling late last year means that more buyers are able to save for their down payment using their primary income alone."
To learn more about Redfin and its recent survey of first-time homebuyers, click on the image above.