If you’re a homeowner, there’s a good chance you’ve built up quite a bit of wealth just by living in your home and letting its value grow. That equity you’ve gained? It could be a game-changer for your child’s future.
With affordability still being a big hurdle, a lot of first-time buyers are having a tough time getting into the market. Even with a steady job and a good plan, buying a home can still feel out of reach. That’s where your equity could really come in and make a difference.
Just to give you a sense of it, the average homeowner with a mortgage has about $311,000 in equity, according to Cotality (formerly CoreLogic). That’s a pretty big number. And more and more parents are using some of that equity to help their kids buy their own homes.
Bank of America found that 49% of buyers between the ages of 18 and 26 got help from their parents to cover their down payment. Check out the chart below for a closer look.
The data doesn’t say exactly how many parents tapped into their home equity, but the wealth they’ve built through owning a home likely played a big role—especially considering how much equity the average homeowner has right now.
Of course, what makes sense will be different for everyone, but helping your child buy a home can be a really powerful legacy. It gives them a head start—helping them build equity, ease some financial pressure, and step into the next chapter of life with more stability. And for parents, it’s a meaningful way to turn what you’ve built into something that truly makes a difference.
This isn’t just about the money. For a lot of homeowners, it’s about being the reason their child gets to say, “We got the house!” It’s about giving them the kind of head start you might’ve only dreamed of when you were their age. And here’s the part that really hits home—according to Compare the Market:
“Of those who did receive monetary aid from parents and grandparents to buy a house, 45% of Americans said they would not have been able to purchase a house without financial support from parents and grandparents.”
Bottom Line
Your equity might be exactly what helps your kids become homeowners—especially if it’s something they couldn’t pull off on their own right now. So here’s the question:
If it turned out that helping your kids buy a home was actually more doable than you thought, would you be open to looking into it?
If you’re curious to learn more or want to figure out the best way to make it happen, reach out to your lender and a financial advisor you trust.
