If you’re a homeowner, you may be sitting on more than just a roof over your head—you’re likely sitting on a substantial amount of home equity. And in today’s housing market, that equity could do more than offer you financial security. It could be the key to helping your children buy a home of their own.
The Power of Equity
Over time, home values tend to rise. That means just by owning your home and making mortgage payments, you’ve probably built up significant wealth. In fact, the average homeowner with a mortgage has around $311,000 in equity,
With high home prices and rising interest rates, even young adults with good jobs and financial discipline can struggle to come up with a down payment. But some parents are using part of their home equity to help bridge that gap for their kids.
The Trend: Parents Are Lending a Hand
According to Bank of America, nearly half (49%) of buyers aged 18–26 received financial help from their parents toward their down payment.
Even if those funds didn’t come directly from tapping equity, there’s a good chance homeownership played a role in making that help possible. After all, for many families, the largest source of personal wealth is the home itself.
Here’s another telling statistic: Compare the Market reports that 45% of Americans who received financial support from parents or grandparents wouldn’t have been able to buy a home without it.
Why It Matters
Using your equity to help your children doesn’t just provide financial assistance—it creates opportunity. It allows them to:
- Build equity of their own
- Put down roots
- Start a family or a new chapter
- Gain long-term financial stability
And for you, it’s about more than dollars and cents. It’s about being the reason your child gets to say, “We got the house.” That’s a legacy that can last for generations.
Things To Consider
Of course, every family’s situation is different. Before making any big decisions, it’s essential to consult your lender and a trusted financial advisor. They can help you understand:
- How much equity you can tap safely
- What the tax implications may be
- The best options for structuring a gift or loan
Bottom Line
Your home has given you more than a place to live—it’s built wealth that could change your child’s life. So ask yourself:
If helping your kids buy a home was more feasible than you thought, would you explore that option?
If the answer is yes, start the conversation. It might be the most meaningful investment you ever make.
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