How Your Home Equity Could Help Your Kids Buy Their First Home

February 23, 2026

How Your Home Equity Could Help the Next Generation Buy a Home

For many parents and grandparents, it’s tough watching a loved one struggle to buy their first home.

You know what homeownership did for you. It brought stability. It built long-term wealth. It created options. And naturally, you want the same foundation for them.

But today’s affordability challenges can make that first step feel out of reach even though conditions are slowly improving.

Here’s what you may not have considered: you could be in a unique position to help, thanks to the equity in your home.

The Equity Advantage You May Be Overlooking

If you’ve owned your home for years or even decades two powerful things likely happened:

Home values rose
Your mortgage balance shrank (or disappeared entirely)

That combination has created significant equity for many longtime homeowners.

And while you may see that equity primarily as part of your retirement plan, it can also serve another purpose: helping the next generation overcome the biggest obstacle standing in their way.

The #1 Barrier for Young Buyers

When John Burns Research & Consulting asked renters what’s keeping them from buying, the top answer wasn’t mortgage rates. It wasn’t even home prices.

It was the upfront cost, especially the down payment.

That’s where your equity could make a meaningful difference.

You can’t control interest rates or the housing market. But you may be able to help with the one hurdle that matters most: getting them in the door.

And helping doesn’t have to mean sacrificing your own financial security. Even a portion of your equity, used strategically, could provide the boost they need, while still preserving your retirement cushion.

Family Support Is Already Playing a Bigger Role

More families are having this conversation.

According to the National Association of Realtors (NAR), nearly 1 in 5 first-time buyers uses a cash gift from family or loved ones toward their down payment. Others rely on inheritance funds or structured loans to make their first purchase possible.

With an estimated $68–$84 trillion expected to transfer from older generations to younger ones over the next two decades, many families are rethinking when and how that wealth gets passed down.

For some, helping now when it can make the biggest impact makes more sense than waiting.

This Is About Opportunity, Not Obligation

Every financial decision should be made carefully. This isn’t about pressure or expectation.

It’s about awareness.

If you’ve built substantial equity, you may have more flexibility than you realize. And in some cases, offering support today could change the trajectory of your loved one’s financial future.

Homeownership isn’t just a transaction. It’s stability. It’s leverage. It’s a foundation.

And sometimes the most meaningful investment you can make is in someone else’s beginning.