Baby Boomers Help Fuel Housing Recovery with Gifts

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Since the recession, many potential new home buyers have decided to rent instead of buying. Rental rates have increased at unprecedented rates, exceeding appreciation of single family homes. Mortgage rates remain low, but the large down payment required for conventional financing has been one factor keeping many people from buying. Baby Boomers with capital to invest are coming to the rescue, seeing opportunities to help their children with down payments as rewarding investments.

The housing market is much healthier today with higher rents and less financial leverage. But will rents continue to rise as most prognosticators forecast? If so, it seems inevitable that home prices will increase, but how much and for how long? With equity flooding into real estate and increased income potential of rental properties, market conditions a favorable for continued growth.

Read more how parents are helping with new home purchases.

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