The Bank of Mom and Dad: How Parents Are Using Home Equity to Fund the Next Generation's San Diego Dream
The path to homeownership in San Diego has never been steeper. With median home prices soaring past the $900,000 mark, the traditional advice of saving up a 20 percent down payment feels increasingly out of reach for many young professionals. In fact, a standard down payment in our coastal market can easily exceed $170,000. Faced with these daunting numbers, a new trend is emerging that is reshaping the real estate landscape. Parents are stepping in to bridge the gap, leveraging their own accumulated wealth to help their children secure a foothold in the housing market.
Recent data highlights just how widespread this phenomenon has become. According to a 2026 study by Northwestern Mutual, a staggering 74 percent of parents with children at home say they would consider or have already started financially planning to help their kids buy a house. Even more striking is the shift in priorities. Nearly 30 percent of parents now state that helping their children purchase a home is more important than helping them pay for college, while another 55 percent view both milestones as equally crucial. This represents a fundamental change in how families view generational wealth building.
The National Association of REALTORS® confirms this trend in their 2025 Profile of Home Buyers and Sellers, noting that 22 percent of first time buyers used a gift or loan from a friend or relative to fund their down payment. For many families, this financial support is not just a generous gift; it is a strategic investment in their child's future. The average age of a first time buyer climbed to a record high of 40 last year. However, research from realtor.com shows that purchasing a home by age 30 can result in a 22.5 percent higher net worth by age 50, equating to an average of $119,000 more in accumulated wealth compared to those who wait until their 40s.
Parents are utilizing a variety of methods to provide this crucial starter capital. While some offer direct cash gifts, many are tapping into the substantial equity they have built up in their own properties over the years. Home Equity Lines of Credit and cash out refinances are popular tools that allow parents to access funds without selling their primary residence. Others are choosing to co sign on mortgages to help their children qualify for better rates, or gifting equity in family owned investment properties.
For San Diego buyers and sellers, this trend has significant implications. Sellers should recognize that young buyers may have stronger purchasing power than their individual incomes suggest, backed by family resources. For prospective buyers, having open conversations with family members about financial goals and potential assistance can be the key to unlocking homeownership much earlier than anticipated. As John Roberts of Northwestern Mutual aptly noted, homeownership has become a team sport, and parents are increasingly the MVPs.
Based on "Parents Are Saving Up to Help Their Kids Buy a Home," read the full article here: https://www.nar.realtor/magazine/real-estate-news/parents-are-saving-up-to-help-their-kids-buy-a-home