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According to the report, family support doesn't always mean financial support. In fact, BofA states that families of first-generation homeowners often instill the importance of owning a home and provide the proper motivation that first-generation homebuyers need to make the leap into homeownership.
The report titled, Bank of America's 2021 Homebuyer Insights Report: First-Generation Homeownership Spotlight, surveyed U.S. adults who currently own a home or plan to purchase one in the future.
“For many first-generation homeowners and their families, homeownership has a unique importance, given the collective efforts to overcome financial challenges that can often span generations,” said AJ Barkley, head of Neighborhood and Community Lending at Bank of America. “Achieving this goal can create a sense of pride and accomplishment that resonates both for the buyer and those closest to them, including their parents and future generations.”
The financial institution reported that of those surveyed, seven out of 10 first-gen homeowners say the importance of homeownership has increased over the past year. Additionally, 61% of first-gen homeowners said that the importance of building equity has increased, compared to 39% of non-first-gen homeowners.
Surprisingly enough, parental expectations drove 43% of first-gen homeowners to purchase a home, compared to 20% of non-first-generation homeowners. BofA also revealed that 37% of first-gen homeowners said they received financial assistance from their parents to purchase a home.
“I view homeownership not only as a way to build generational wealth for me and my young daughter, but to also have a stake in a neighborhood,” said Sheena C, a first-gen homeowner who moved from Philadelphia to Detroit, according to the report. “I immediately connected to the vibrant community in Detroit and decided to put down roots.”
“The journey toward homeownership – whatever your timeline – actually begins with your first banking experience and continues as you learn to budget, save and establish a solid credit history,” said Barkley. “Building financial confidence takes time and requires making early, consistent and informed decisions that set you up for success.”