01-05-2025
Nepo babies using 'mommy and daddy money' to buy homes spark wave of friendship-ending jealousy
Many Gen Z Americans and Millennials are suffering from 'house envy,' a growing anger towards others their age who are able to buy a home easily with help from family.
They are fed up with being outbid with all-cash offers from fellow members of their generation and have been forced to resort to desperate measures in order to land a house.
Despite grappling with a rocky market, economic uncertainty, and the aftershocks of Covid-19, both groups want homeownership even if it comes with huge risk.
One Millennial, who is a doctor from Connecticut, says she recently bought a home with help from her family but had a falling out with a friend who was jealous over the purchase.
'I recently bought a home with the help of my family. I'm glad I did given the current low inventory, and it's a home I really like,' Mia Kazanjian told
'I was at a party recently at my friend's house shortly after buying my home. She's also a Millennial, a few years older than me. We were catching up and she asked me to show her pictures, which I did.'
After that, Kazanjian says her former friend began asking her questions about her finances, what she planned to do with the extra room, and then mentioned the soaring construction prices.
'It was unending questions. I responded without giving much detail, realizing that my buying this home was only a stressor to her.'
Kazanjian says she wishes she hadn't said anything and never would have imagined that would be the response.
'I texted her to thank her for the party, and I didn't hear back. I invited her to dinner and she said she couldn't make it. I haven't heard from her since.'
Home envy is also a hot topic on Reddit, where Gen Z Americans and Millennials are unloading their anger over mom and pop buys.
'Buys a home fresh out of school, $475k. I know resources come from different places, but it seems like this kind of purchase is almost always funded via mommy and daddy money,' one angry commenter wrote on a Reddit thread.
'You're always cognizant of those who had a leg up in the housing market,' they continued.
'Envy is one of the "seven deadly sins" but it's hard to escape it when you see someone fresh out of school buy a place you could only maybe afford now, after a career of 20 years.'
Others write they are furious with friends who have a leg up, with one commenter saying she resents a pal whose father handed her money for a home.
'My best friend's dad funded the down payment on her condo. She gives me real estate advice as if she had any part in the process,' she wrote on the social media site.
'Another friend just informed me that aside from her parents' house that she'll inherit, she's about to be given a house from an aunt along with her life savings of 800k. Meanwhile I'm working my hospital job, saving and searching for a livable fixer upper,' the Reddit user continued.
'My parents are living just above the poverty line and are still renting in their late 60s. They have zero savings. All you can do is try your hardest to make smart financial decisions, live beneath your means and hopefully it'll pay off in the end.'
Another person sees the bright side of not inheriting family money, saying she had friends 'who got mom and dad money' for their house but it came at a price.
'But 99 percent of the time family money has strings attached to it and their parents are still controlling them as adults. It doesn't seem that great to me,' she wrote.
Nearly two-thirds of Gen Z (66 percent) and Millennials (65 percent) who haven't bought a home admit they're envious of friends and peers who have, according to a new study by BMO Real Financial Progress Index, which tracks housing data.
A staggering 61 percent of non-homeowners feel less confident in their chances of owning a home today than they did during the height of the pandemic.
More than half say they feel like they've missed the boat entirely.
Known as the Goldilocks effect, over two-thirds of Gen Z and Millennials are holding out for the 'just right' moment - specifically, lower mortgage rates.
Over 60 percent of both groups say a typical starter home just doesn't cut it anymore.
For those who are set on buying, they are being forced to come up with creative - but sometimes risky - ways to purchase.
Co-buying is one option, but it could go wrong.
More than half of younger non-homeowners say they'd buy a house with friends or family. For 57 percent of Gen Z and 54 percent of Millennials, having a mortgage buddy is preferable to going it alone.
Borrowing from family makes up nearly 60 percent of Gen Z and 57 percent of Millennial homeowners, who say family support was essential to making their purchase happen. But then you're stuck owing back the money on top of a mortgage.
Even if their family didn't cough up cash, many Gen Z Americans remain at home for years after college in order to save.
'They only reason I was able to buy a house in California last year was because I lived with my parents until I was 27. Without some kind of advantage like that, I don't know how anyone could ever pull it off without making 150k plus,' another commenter wrote on Reddit.
In another bold and risky move, some Americans raid their retirement fund.
For Gen Z, 45 percent of prospective buyers consider dipping into their 401(K)s for a down payment. And 55 percent of Gen Z homeowners expect to still be paying off their mortgage post-retirement.
Fixer uppers are another way to go.
A majority of non-homeowners - 63 percent of Gen Z and 65 percent of Millennials - say they're open to buying homes that need serious work, embracing renovation over turnkey homes.
Relocation has also become an option for many.
San Antonio, Texas, for example, has become a hotspot for young Americans due to its affordability and remote work opportunities.
Gen Z has 56 percent and Millennials have 63 percent of people who say they'd consider moving to another state - or even another country - just to make owning a home real.
Alongside being outbid by members of their own generation who are receiving parental help, Gen Z and Millennials are also being beat out by Baby Boomers, who now make up the largest group of home buyers.
They've benefitted from decades of savings from low mortgage rates and lower home prices, and are locking out younger people with all-cash offers and bigger down payments.
'In a plot twist, Baby Boomers have overtaken millennials – the largest U.S. population – to become the top generation of home buyers,' said Jessica Lautz, NAR deputy chief economist and vice president of research.
