The Rise of Family Financial Support for California Homebuyers: A Look at the Data and Stories

The rising cost of California homes has made it increasingly difficult for first-time buyers to afford a house on their own. Federal data shows that many buyers are turning to their families for financial help in order to make their homeownership dreams a reality.

In areas like North Hollywood, South Central Los Angeles, Riverside, Santa Ana, and Alpine in San Diego County, more than half of FHA borrowers are receiving down payment assistance from their relatives. This trend is not limited to FHA loans, as many buyers using conventional mortgages are also getting help from their families.

The impact of this reliance on family wealth is concerning to housing experts, who point out the wealth and homeownership inequalities by race and ethnicity. Families that have owned homes for generations have an advantage, while others may struggle to afford a home in California without financial assistance.

Despite the challenges, stories like that of Raphael Leib, who received help from his parents to buy a house in Los Angeles, and Jackie Dillon, who used money from her grandmother to purchase a home in South Los Angeles, show how family support can make homeownership possible for some.

For those who don’t have family assistance, like Stephanie Pavón, the dream of owning a home in California can feel out of reach. The high cost of housing in the state has led many to consider moving to more affordable areas or states.

The California Dream collaborative analyzed data on FHA loans to shed light on the increasing reliance on family wealth in the state’s real estate market. The data shows that family support is playing a significant role in helping first-time buyers achieve homeownership in California.