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New Study Ranks ‘The Bank of Mom and Dad’ 7th Largest Housing Lender in the U.S. in 2018
In a new report sponsored by Legal & General Group and released today, family and friends play a major role in the U.S. housing market, supporting the purchase of $317 billion worth of property across America in 2018.
27 Feb 2019
This accounts for 1.2 million homes, with an average sum of $39,000 lent or given—if it were an actual business, BoMaD would be the Number 7 lender, ranking among the Top Ten U.S. mortgage lenders.
Key findings of the 2019 BoMaD USA study include:
- 20% of homeowners across the U.S. said they received financial help from family and friends when they purchased their current home
- BoMaD spent $47 billion helping others purchase $317 billion worth of homes
- The Pacific region saw the greatest share (27%) of BoMaD assistance, and the Rocky Mountains region the lowest (11%)
- 43% of home buyers under 35 received BoMaD help in their home purchase
- 6% of over-55s received help, while 12% expect to
- BoMad funding for college ran about $41,000 for both homeowners and non-homeowners
- 51% of those who graduated from college debt-free now own a home, whereas 39% do not
- 15% of BoMaD “lenders” have had to accept a lower standard of living to help their loved ones
Nigel Wilson, Legal & General Group CEO: "BoMaD reflects a housing market where significant problems remain in matching the supply and demand of different types of housing, most notably starter homes and affordable housing. As the population changes and the Millennial generation strives to join the homeowning democracy, new thinking is due on meeting the needs and aspirations of Americans."