While home ownership by young people has been on the decline for the last few decades, a new study indicates that an increasing number of millennials are choosing to finance a home purchase with a loan from their 401k.
According to new research by Bank of the West, a banking subsidiary of BNP Paribas, roughly 20 percent of millennials, ages 21-34, who plan to buy a home expect to use funds from their retirement 401k to do so. Meanwhile, 30 percent of those who currently own a home have already done so.
These numbers are much greater compared to the percentage of Baby Boomers (ages 52-70) who used 401k funds to buy their homes (7 percent) or are planning on dipping into their 401k to finance a home purchase (8 percent).
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