Nepotism has been a topic for many in terms of jobs and opportunities, but how about "nepo-homebuying"? Yahoo Finance's Alexandra Canal, Josh Schafer, and Pras Subramanian break down this practice that now has a name—and how it could impact homebuyers who don't have assistance from family to buy their homes.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

ALEXANDRA CANAL: Well, you guys have heard of nepo-babies, but what about nepo-homebuyers? That was kind of a hard transition there. But we went with it. So this is a story that piqued my interest. According to a new Redfin study, 38% of new homebuyers under the age of 30 bought their home using family money, or at least paid for the down payment using family money. And guys, this makes me think of the housing affordability issues that we're seeing across the board.

And if you look at interest rates, they're increasingly high. No reprieve there if you're a first-time home buyer, especially around the age of 30. Likely, you are going to need some help to purchase that first home, especially as more homes are becoming more expensive. Even the starter homes are becoming pricier to afford. And interesting to see that those that are able to get ahead and own a home are having a little bit of help on that front.

JOSH SCHAFER: I'm almost surprised the numbers not higher.

ALEXANDRA CANAL: I'm sure it is.

JOSH SCHAFER: I feel like it is if people are being honest, right? Because I was-- Ali and I were talking about this a little bit off-air. If you account for not necessarily just money for a down payment but perhaps money you've just received from your parents in the 10 years leading up to you buying that house and potentially getting ahead, whether it be student loan payments, or some other big purchase like that makes you able to buy a home earlier than people, of course they're getting some help. Look at how expensive a house is at 7.5% mortgage. This ain't cheap, Pras.

PRAS SUBRAMANIAN: Yeah, and I got to imagine like we saw that chart over time with the nepo-payments, like 40% for the last 50 years, right? I bet parents have been helping kids out or younger young adults out with their homes for a long time now. Now we're being amplified by the really bad rate environment for mortgages and how the crunch for houses. That's like a double whammy that's making it much harder--

ALEXANDRA CANAL: Rates apply.

PRAS SUBRAMANIAN: --for anyone to afford a home. So maybe it's going up, the percentage of people that need payment help, I mean. But I feel like this has always been the case for some time now.

ALEXANDRA CANAL: Yeah, I completely agree. And like, to your point, if you're getting help paying down your debt in any sort of capacity, you're getting ahead. And that is leading to a bigger wealth gap at the end of the day. And sort of can see how cycles like this repeat. If you're not able to afford your first home, or if you're not able to have help from your parents, you are going to be set behind a bit, comparatively. So I think it's just something to mind.

PRAS SUBRAMANIAN: The nepo-- the actual--

ALEXANDRA CANAL: The nepo.

PRAS SUBRAMANIAN: Nepo is just too funny. I mean, it really kind of hooked us into it. But really, it's just a tale of-- that's been the beginning since the beginning of time, parents helping their kids out. The question is, now you really need the help.