Young homebuyers, particularly millennials and Gen Z, are increasingly relying on family support to overcome the daunting challenge of a down payment. Approximately 23.8% of young Americans receive cash gifts or inheritances for their down payments. In contrast, those without such financial support often take longer to save the necessary funds.

This reliance reflects today's dual pressures: soaring housing prices and high mortgage rates, both of which outpace wages and savings rates.

Widespreading Intergenerational Wealth—and the Gap

Family support isn't just about closing deals; it's about building bridges between generations. Research shows that 78% of Gen Z homebuyers received down payment assistance (primarily from their parents), significantly more than any other age group. This trend highlights how financial security, passed down through the family, accelerates asset accumulation among younger generations.

However, the downside is equally significant: those without such support face a more difficult climb, exacerbating systemic inequalities associated with intergenerational wealth.

Strategic Choices for Long-Term Financial Health

Beyond outright cash gifts, many young buyers are employing a range of creative financial strategies:

Multi-pronged Savings: Most still rely on their salaries (56.5%), while others are selling stocks (20.4%), withdrawing funds early from retirement accounts (12.3%), and even liquidating cryptocurrency holdings (12.7%).

Living as Savings: Approximately 18% are choosing to live with family or friends to reduce expenses and boost savings.

Seeking Affordability: First-time buyers are gravitating toward affordable markets or considering fixer-upper homes and less-than-perfect neighborhoods.

Utilizing Loans and Registry Tools: "Housing Funds" are becoming increasingly common on wedding registries, allowing funds to flow directly from friends and family toward a home purchase.

Parenting and Co-housing: A Growing Momentum

Interestingly, homebuyers with children are more likely to receive family assistance. The survey shows that 25% of homebuyers with children have asked family for a down payment, double the rate of homebuyers without children (12%). Larger homes, combined with advantages like nearby schools and flexible workspace, highlight the importance of a multigenerational homebuying strategy.

For many families, helping their children buy a home is also about providing stable housing for their grandchildren—a tangible investment in the well-being of the next generation. With so many financial and emotional risks involved, clear communication and structure are crucial:

Formal arrangements: Define whether the funds are a gift, loan, or equity, and outline terms such as repayment or ownership shares.

Long-term planning: Consider how this support will fit into the future financial circumstances of the buyer and their parents—including retirement needs.

Balancing fairness and agency: Ensure young buyers are not indefinitely dependent and have a clear path to full ownership.

This evolving landscape of family finance reflects not just the escalating costs of housing, but also shifting family dynamics and creative adaptability. It's a narrative where economics and emotions intertwine—where the path to homeownership is increasingly a shared journey.