Kids Really Do Help You Buy A House – Survey Shows Parents Twice As Likely To Get Down Payment Help

According to a recent survey commissioned by real estate brokerage Redfin, homeowners with children are significantly more likely to receive family assistance for down payments or monthly mortgage payments than those without children.

The survey found that 25% of recent homebuyers with children living at home received a cash gift from family to help with their down payment. That's more than double the 12% of homebuyers without children who received similar assistance.

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Homeowners with children also are more likely to rely on family support for ongoing mortgage payments. Seventeen percent of homeowners with kids reported receiving financial help from family for mortgage payments compared to 8% of those without children.

Additionally, 11% of homeowners with children have used inheritance money to cover their mortgage compared to 7% without kids.

Receiving family financial support is just one strategy people use to manage housing expenses. The survey also explored other common methods homeowners use to pay their mortgages. Those with children were likelier than those without to use nearly every method listed in the report.

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For example, they were twice as likely to work a side hustle (23% versus 12%) and nearly twice as likely to withdraw money early from retirement funds (14% versus 9%).

U.S. housing costs have surged by over 40% since the pandemic began, with rising home prices and mortgage rates making homeownership challenging for many, regardless of whether they have children. Half of homeowners with kids report struggling to afford their housing payments and those without kids face similar challenges.

There are several reasons families with children may be more likely to receive financial help from relatives for down payments or mortgage payments:

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Larger, more expensive homes: Families with children often seek larger homes with more features and amenities, which drive up costs. According to the survey, 68% of respondents with kids cited indoor space as a "must-have" they wouldn't sacrifice for affordability compared to 60% of those without kids.

People with kids were also more likely to rank all 19 features surveyed – including proximity to highly rated schools, grocery stores, workspace for remote jobs, home schooling areas and low climate risk.

Families with children tend to have higher incomes, with 65% earning $50,000 or more annually compared to 42% without children, which might contribute to their extensive list of housing priorities.

Grandparents' incentive to help: Financial support from parents may be more common when it benefits their children and grandchildren. Redfin Chief Economist Daryl Fairweather noted that grandparents are often motivated to assist in providing a safe and stable home for their grandchildren, viewing their contributions as a way to support multiple generations.

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Younger homeowners: Homeowners with children are typically younger than those without, with 67% of respondents falling into the Gen Z or millennial categories compared to just 25% of those without kids. Younger people may be more likely to seek and receive financial support from their parents.

Rise of multigenerational homes: Redfin agents report increasing multigenerational households as housing costs climb. Financial support often flows in both directions, with older parents helping their adult children purchase homes or adult children assisting their aging parents.

"Monthly costs are so high these days that I'm trying to find big homes for a lot of multigenerational families," said Julie Zubiate, a Redfin Premier agent in the San Francisco Bay Area. "A lot of clients who work in tech are looking for homes with ADUs so their older parents can move in or maybe it's a Gen Xer looking for a home that's big enough for their early-20s kids to live in."

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