Parents Shift Focus to Homebuying Help

NEW YORK — As more younger Americans struggle to purchase a home, a growing share of parents are stepping in to help.

A Northwestern Mutual 2026 Planning and Progress study found that 74% of parents would consider helping a child purchase a house and, among those parents, "29% say helping with a home purchase is more important than helping pay for college."

Because a home purchase can increase wealth, buying a home has become more of a priority. According to a Realtor.com generational wealth report, individuals who buy a house by age 30 can see a net worth that is 22.5% higher at age 50 than buying a house in their 40s, an average increase of $119,000.

A longer accumulation window compounds financial security. Northwestern Mutual adviser Nisu Patel says, "This doesn’t mean parents necessarily value education less. Rather, it reflects the reality that many young adults can access loans or scholarships for college, but breaking into the housing market often requires upfront capital that a lot of young adults don't have just yet."

Bankrate's Stephen Kates indicates, "For many families, weighing the costs and benefits of a college degree has become more complicated" due to the growing presence of artificial intelligence in the workplace, persistent shortages of skilled tradespeople and higher student debt levels.

Parents who are willing to support their children's homeownership dreams may provide them with greater financial stability.

"When they’re able to step into homeownership, it creates movement all the way up the chain – move-up buyers can sell, sellers can make their next move, and the whole market becomes healthier," says Mike Ognissanti of Churchill Mortgage. Parents and children also need to remember that there is no one-size-fits-all solution.

Source: Realtor.com (03/26) Bizouati-Kennedy, Yael

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