How Parents Are Boosting First-Time Buyer Demand and Reassessing Homeownership Priorities
Parents Increasingly View Homeownership as a Financial Priority for Their Children
At a Glance
- In January 2026, 52% of parents surveyed said they would consider helping their children buy a home.1
- Among parents assisting with a home purchase, 29% said it is more important than funding college, while 55% said it is equally important.2
- Among surveyed Gen Z non-homeowners, 54% believe homeownership is or will be financially affordable—up from 44% in 2025.3
The survey found that 52% of parents would consider helping their children buy a home, reflecting growing recognition of housing as a foundational financial asset.4
Homeownership as a Financial Strategy
Among parents who have already helped their children purchase a home, 29% said doing so is more important than paying for college, while another 55% said it carries equal importance.5 The results highlight a belief that homeownership may offer more immediate and tangible financial benefits for young adults.“Many parents are viewing homeownership as a way to help their children establish financial stability earlier in life,” said Brett Hively, Senior Vice President, Mortgage Capital Markets and Financial Strategist at Ameris Bank. “Owning a home allows younger buyers to begin building equity and participating in long-term wealth creation.”
Potential Housing Market Implications
As more parents incorporate homeownership into their family financial planning, demand for entry-level homes, townhomes, and condominiums may remain supported. This dynamic could influence housing activity beyond first-time buyers alone.“When parents help their children enter the housing market, it creates movement across multiple levels,” Hively said. “First-time buyers gain access to homeownership, existing homeowners are able to sell and move, and communities benefit from new long-term residents.”
Ways Parents Are Assisting with Home Purchases
Parents have several options when helping their children purchase a home, depending on their financial situation and goals. Common approaches include co-signing on a mortgage, providing cash gifts for down payments or closing costs, or purchasing a home through a trust.“Some parents choose to buy a home outright and rent it to their child until refinancing becomes an option,” Hively noted. “Each approach has different considerations, which makes planning and guidance especially important.”
Gen Z Shows Growing Confidence in Affordability
The survey also points to increasing optimism among Gen Z. Among non-homeowning respondents, 54% believe owning a home is financially attainable now or in the future. This marks an increase of 12 percent from 2025.6“This growing confidence suggests younger buyers are adjusting expectations and remaining engaged with the housing market,” Hively said. “Parental support can play a role in reducing some of the financial hurdles that often delay first-time homeownership.”
Balancing Competing Financial Priorities
Despite the interest in helping children buy homes, parents continue to face complex financial decisions. Retirement savings, education costs, existing mortgage obligations, and lifestyle goals all factor into the equation.“At Ameris Bank, our mortgage bankers help parents evaluate options for supporting their children’s homeownership plans,” Hively said. “Our goal is to empower families to navigate these decisions with confidence and clarity, ensuring a smoother transition into homeownership for the next generation.”
Sources:
1, 2, 3, 4, 5, 6 - https://news.northwesternmutual.com/image/2026+P%26P+Wave+I+Data+Deck+The+Financial+States+of+America.pdf
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.