If you own a home, you’ve probably accumulated a good amount of wealth simply by living there and witnessing the increase in its value over the years. That equity can be a powerful tool to potentially transform your child’s future.

Affordability continues to be a hurdle for many first-time buyers in today’s market. Even with a steady job and a good plan, owning a home might still seem unattainable. However, that’s where your equity can really come into play.

The average homeowner with a mortgage has about $311,000 in equity, as reported by Cotality (formerly CoreLogic). That's a substantial amount. Some parents are deciding to use part of that equity to assist their children in buying their own homes.

Bank of America reports that 49% of buyers aged 18 to 26 received money from their parents to help with their down payment.

While the data doesn’t indicate how many parents utilized their home equity, it's likely that the wealth they've accumulated from owning a home played a significant role in making it happen, especially considering the substantial equity that the average homeowner has these days.

What’s best for each individual really depends on their unique circumstances, but that kind of legacy is truly impactful. It can empower younger generations to purchase a home, establish their own equity, and start a new phase of life with less financial strain and greater stability. For parents, it’s an opportunity to transform their achievements into something genuinely meaningful.

This isn't just a financial decision. For many homeowners, it's about giving their kids the opportunity to say, "We got the house." It's about providing them with a head start that they may have only dreamed of at their age. And here's the key point: Compare the Market states that...

““Of those who did receive monetary aid from parents and grandparents to buy a house, 45% of Americans said they would not have been able to purchase a house without financial support from parents and grandparents.”
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— Compare the Market

Bottom Line

Your equity might be what enables your children to become homeowners, even if they can't do it on their own. So, here’s the question.

If you found out that helping your kids purchase a home was more doable than you originally thought, would you be interested in looking into that possibility?

If you're looking to dive deeper or figure out the best approach, reach out to your lender and a financial advisor you trust.