According to a recent Redfin poll, 25% of recent homebuyers with children living at home received a cash gift from family to help with their down payment, which is more than twice as many as the 12% of recent purchasers without children.
The study results come from an Ipsos survey that was commissioned by Redfin and administered to 1,802 Americans between the ages of 18 and 65 in September 2024. These findings are analyzed by contrasting respondents with and without children under the age of 18.
Receiving family assistance for mortgage payments is also more common among homeowners who have children living with them. Compared to 8% of homeowners without children, one in six (17%) homeowners with children say their family provides financial assistance to help them pay their mortgage. Additionally, compared to 7% of homeowners without children, 11% of homeowners with children have utilized inheritance funds to cover their mortgage.
One method that respondents reported utilizing to cover their housing costs was receiving family money. In addition, Redfin questioned participants about several additional typical mortgage payment strategies. The full research includes a list of methods that were more common among homeowners with children living at home than among those without children. They are almost twice as likely to withdraw money from retirement accounts early (14% vs. 9%) and twice as likely to take a side gig (23% vs. 12%).
Since the epidemic, housing costs in the United States have increased by almost 40%, and many people, with or without children, find it impossible to acquire a home due to skyrocketing home prices and mortgage rates. According to the report, half of homeowners with children find it difficult to make their housing payments. Homeowners without children are about as likely to face difficulties.
People who have children may be more likely to get assistance from relatives with their down payment and/or mortgage payments for a number of reasons:
- People who have children are more inclined to purchase more expensive, larger homes with more features and local amenities. Compared to 60% of respondents without children, 68% of those with children stated that indoor space is a “must have” that they would not be prepared to forgo for affordability. Indeed, among the 19 features we inquired about, those with children were more likely to evaluate them as “must haves” than those without children. This features low climate risk, space for working from home and homeschooling kids, and easy access to reputable schools and grocery stores. Notably, those who have children typically make more money, which may contribute to their longer lists of need. Roughly two-thirds (65%) of respondents with kids earn $50,000 or more, compared to 42% of those without kids.
- When financial assistance benefits both their children and grandchildren, parents may be more inclined to give it. It makes sense that parents are more inclined to assist their children with housing costs when doing so also gives their grandkids a safe and secure place to live, according to Daryl Fairweather, Redfin Chief Economist. According to Fairweather, they are assisting several family members, especially youngsters who lack financial resources, in improving their home circumstances.
- Homeowners with children are often younger than those without children. Compared to 25% of respondents without children, nearly 7 out of 10 (67%) of respondents with children are Gen Zers or millennials. It’s likely that younger people may approach their parents for support and get it.
Additionally, Redfin agents note that as home prices rise, multigenerational households are becoming more prevalent. Financial assistance can be given in both directions: by adult children to their parents or by older parents to their grown children.
“Monthly costs are so high these days that I’m trying to find big homes for a lot of multi-generational families,” said Julie Zubiate, a Redfin Premier agent in the 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.”
To read the full report, including more data, charts, and methodology, click here.
