A Legacy of Homeownership: Using Equity to Help the Next Generation

The dream of homeownership is getting harder for many young people today – even those with steady jobs. In Florida, rapidly rising home prices have far outpaced incomes. In fact, Florida’s median home price has jumped about 40% over the past few years, while household incomes grew only 12%. Here in our area, median home values are around $360,000 to $385,000. Add in 30-year mortgage rates around 7%, and first-time buyers face steep obstacles. Lenders are tightening credit and down-payment requirements, making it hard to get a loan even for well-qualified buyers.

By the numbers:

• Nearly 40% of Americans report receiving financial help from family to buy a home, and 45% say they could not have afforded a house without that support.

• 25% of recent buyers with children received a family cash gift for their down payment (versus just 12% of buyers without children).

• 21% of Gen Z homebuyers say they plan to use a loan from their parents or family for their down payment.

• Locally, median home prices in the mid-$300,000s are far above typical starter-home budgets.
  
  

These trends hit home for many families. A recent survey found that 51% of people planning to buy in the next year expect to lean on their parents for help, and 29% have even moved back in with family to save money for a home. In practice, this often means tapping into a parent’s accumulated equity. For example, one national bank found nearly half (49%) of young buyers ages 18 to 26 received down-payment help from their parents. And the National Association of Realtors reports about 25% of first-time buyers used loans or gifts from friends and family toward their purchase. Intergenerational support has become a go-to down-payment strategy for many younger buyers.

At the same time, older homeowners in our community often have substantial equity built up in their homes. The average homeowner with a mortgage holds roughly $311,000 in equity. Local market data shows few distressed sales, implying most owners are well above water on their mortgages. In practical terms, that means many long-time homeowners have tens or even hundreds of thousands of dollars of value that could be shared. Turning some of this equity into a financial gift or loan can give a younger buyer a life-changing boost.

For families, this can feel like passing on a meaningful legacy. It’s not just about money. Many parents say it’s about being the reason their child gets to say, “We got the house,” giving them the kind of head start they only dreamed of at that age. Helping a child buy a first home can turn the equity you’ve built into something deeply meaningful — a stable foundation and pride of ownership for the next generation.

Of course, using equity for your child’s home purchase is a big decision that depends on your own financial goals. Options range from outright gifts (which may have tax implications) to parent-guaranteed loans or even co-buying arrangements. Banks and credit unions can structure parent loans in compliant ways, and there are tax rules (and gift limits) to consider.

Talk to your lender and financial advisor. If you’re thinking about helping your children achieve homeownership, reach out to your mortgage lender and a trusted financial planner or accountant. They can explain the options — from refinancing or home equity lines to gifts and down-payment assistance — and help you weigh the pros and cons for your family. It could be a way to turn the equity you’ve built into a once-in-a-lifetime opportunity for your children to own a home.