Articles | January 12, 2024

How to Help Employees Struggling to Buy Their First Home

By Bennett Hadley

It’s no secret that many American workers are stressed about their finances. Market fluctuations, long-lasting inflation and civil and geopolitical unrest have left workers feeling pessimistic about ever reaching their financial goals.

According to Bank of America’s 2023 Workplace Benefits Report, only 42 percent of employees feel financially well, a percentage that’s declining year-over-year and at its lowest since the annual survey began in 2010.

Younger workers, in particular, are struggling

This financial struggle is most evident for Millennial and Gen Z workers struggling to afford their first home. A multitude of factors have combined to keep this key financial milestone out of reach for many young workers: the burdensome cost of higher education, high cost of living, pandemic-era supply chain issues driving up the cost of homes, high interest rates resulting in prohibitively high mortgage rates and the resumption of federal student loan payments.

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Employers can help

While this is a frustrating reality for many Americans, the good news is that employers can help and provide a high-value benefit to their employees. Financial wellness benefits can help employees achieve their financial goals, including buying their first home, in a variety of ways:

  • Education is often the first step for employees to improve their financial situation. Many Americans do not have a clear understanding of fundamental personal finance topics.
  • Financial wellness platforms and coaching help employees with the juggling act that is personal finance. For employees struggling to buy their first home, support that prioritizes and holds employees accountable to saving, paying off debt and increasing their credit score can be the difference between making consistent progress toward their goal and never being able to afford a home.
  • There are also specialized financial wellness products that are designed to meet specific financial challenges, such as student loan repayment, debt management, credit-score monitoring, emergency savings, caregiver assistance and many more.

Financial insecurity is a pervasive issue that restricts young workers’ access to prior generations’ primary wealth-building tool. Employers can provide a cost-efficient benefit to their employees that addresses this issue, strengthens their relationship with their people and attracts and retains employees in a competitive talent market.

Learn more

Download our insights that:

  • Illustrate the timeline of the housing challenge for young workers
  • Provide statistics on the challenge
  • Outlines four types of employer-sponsored programs to address the challenge

Interested in helping your employees become homeowners?

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This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.