The Merriam-Webster Dictionary defines the “sandwich generation” as a generation of people who are caring for their aging parents while supporting their own children—and according to new research by Realtor.com, 17% (or one-in-six Americans) of Americans fall into this designation who are taking care of children under 18, and their parents/grandparents; an impact which has surprisingly led them to homeownership. The report also examines how the current Sandwich Generation has received support to help save for retirement or afford a home of their own. “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 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.”

The ongoing lack of available inventory has kept home prices high and competition intense among buyers. For the Sandwich Generation, nearly half (47%) say their caregiving circumstances have impacted their finances, including their housing. Among 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, a 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.”

Source: Mortgage Point