For many parents and grandparents, it’s tough to watch a family member struggle to buy their first home right now. You remember how owning a home brought stability and helped build your net worth, and you want the same opportunities for your loved ones.

With affordability getting tougher in recent years, buying a home can feel like an uphill climb, even though things have been slowly getting better. Here’s something you might not know: you could be in a strong position to help yourself, thanks to the equity in your current home.

The Equity Advantage You May Not Be Thinking About

You’ve probably lived in your home for years—maybe even decades. And over that time, two big things happened:

• Your home’s value went up

• Your mortgage balance went down—or maybe you’ve even paid it off completely

That mix has helped many homeowners like you build significant equity.

You might picture that equity as retirement money, but it can also help the next generation overcome their biggest obstacle.

The #1 Thing Holding Young Buyers Back

When John Burns Research & Consulting (JBREC) asked renters what’s stopping them from buying, the number one answer wasn’t mortgage rates or home prices. It was the upfront cost, especially saving enough for a down payment (see graph below).

You might be able to make more of a difference than you think. While you can't control interest rates or market prices, you can use your home equity to help cover upfront costs. Gifting money to a loved one to help them buy a home doesn't have to put your own financial future at risk.

That’s where you might have more impact than you think. You can’t control interest rates or market prices, but you could tap into your equity to help cover upfront costs. Gifting money to a loved one so they can buy a home doesn’t have to put your own financial future at risk.

With an estimated $68 to $84 trillion set to move from older generations to younger ones over the next 20 years, many families are rethinking when and how they’ll pass down wealth. It might be worth your family considering this too.

Help from Loved Ones Is Making a Move Possible for Many First-Time Buyers

More and more young buyers are turning to money from family and friends to jumpstart their path to homeownership. The National Association of Realtors (NAR) reports that almost one in five first-time buyers rely on a cash gift from a loved one for their down payment.

Other young buyers are tapping into inheritances or borrowing from people they know to finally break into the market (see charts below):

This Is About Opportunity, Not Obligation

Every family’s situation is unique, so make your decision carefully. If you’ve built up significant equity, you might have more flexibility to help than you realize.

It’s more than money. It gives stability, security, and a foundation that can improve their lives, especially when they can’t do it on their own.

Bottom Line

If you're wondering what your home equity could do for you or your family, let’s have a simple conversation. Sometimes the most meaningful investment you make is one that benefits the next generation.