Family Supports Sandwich Generation’s Home Buying
About 1 in 6 Americans fall into the Sandwich Generation – taking care of children and parents at the same time. Many receive financial help to afford a home.
SANTA CLARA, Calif. – According to new research from Realtor.com, 17% of Americans say they are taking care of their children (under 18) and parent(s)/grandparent(s) at the same time ("Sandwich Generation") and for a third of them, the impact of being in the middle has led to homeownership. The research also examined how the current "Sandwich Generation" has received support to help save for retirement and/or afford a home.
"Unfortunately for home shoppers, affordability is still a big challenge in the current housing market, but for the Sandwich Generation, family support is providing a helping hand when it comes to finances," said Laura Eddy, VP of research and insight for Realtor.com. "Over half of adults within the Sandwich Generation who receive financial support from family members report that this support is helping them to afford a home, while a little less than half (47%) said the support helped them save for retirement."
Being in the Sandwich Generation is equal parts negative and helpful
Scarce inventory has kept home prices high and competition intense among buyers, especially today when housing supply remains well below pre-pandemic levels. For the Sandwich Generation, nearly half (47%) say their caregiving circumstances have impacted their finances, including their housing. Among the negative impacts, 30% say they've been prevented from buying a home, and another 30% report they've been prevented from paying off their mortgage. By contrast, a third say their caregiving situation has helped them financially to buy a home.
"It's not uncommon for people to find themselves taking responsibility for the home of an aging or deceased family member and ultimately inheriting the home after they pass," said Kendall Bonner, Realtor.com housing expert. "With today's increased home equity and the state of current lending rates, it can be an extremely helpful way to get into the housing market, especially if they are not currently a homeowner. Real estate continues to be the most consistent method for building generational wealth."
Men, millennials and Gen Z are most likely to identify as part of the Sandwich Generation
The Sandwich Generation is not confined to one demographic. In fact, survey respondents who identified as part of the generation spanned multiple age groups. Millennials made up the greatest portion (36%) followed by Gen Z (30%), Baby Boomers (17%) and then Gen X (16%). And, between men and women, men were more likely to say they support both kids under the age of 18 and parents/grandparents, with more than half (56%) identifying as part of the Sandwich Generation vs. 44% of women.
Millennials are the most financially affected in the Sandwich Generation
Millennials are especially affected financially, and on opposite sides of the spectrum. While 46% of millennials who support children and older relatives say it is preventing them from buying a home, another 43% actually said their circumstance is helping them to afford a home. More likely to be parents, Millennials say they support their children financially and in the home the most, while Gen Z are more likely than the general population to say they provide financial support to their parents.
Source: Realtor.com
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