You Could Use Some of Your Equity To Give Your Children the Gift of Home

You Could Use Some of Your Equity To Give Your Children the Gift of Home

If you own a home, chances are you’ve gained considerable wealth through rising property values over time. That equity could be the key to helping your child purchase their first home.

Affordability challenges continue to make it difficult for many first-time buyers, even those with steady income and solid financial plans. That’s where your equity can provide meaningful support.

On average, homeowners with a mortgage hold about \$311,000 in equity, according to Cotality (formerly CoreLogic). Many parents are now using a portion of that equity to assist their children in achieving homeownership.

Bank of America found that 49% of buyers aged 18 to 26 received financial assistance from their parents for a down payment.

Even though the data doesn’t clarify how many parents used their home equity directly, the wealth they’ve gained from owning a home likely played a big role in making that support possible—especially given today’s average equity levels.

Every family’s situation is different, but using that equity can be a powerful way to create a lasting impact. It gives the next generation a chance to step into homeownership, start building equity of their own, and ease into this new chapter with greater financial stability. For many parents, it’s more than a financial move—it’s about giving their child the opportunity to say, “we got the house,” and creating a meaningful head start they may not have had themselves.

According to Compare the Market, 45% of Americans who received help from parents or grandparents said they wouldn’t have been able to buy a home without that support.

Bottom Line
Your home equity could be the key to helping your child buy their first home—something they might not be able to do on their own. If that possibility feels worth exploring, now’s the time to talk with your lender and a trusted financial advisor to understand your options.