Imagine if you had to buy your current home today – at its current price and with the income you earned in your 20’s. Would you be able to afford it?

For many homeowners, the answer is a resounding NO.

Homeownership has historically been a pathway to financial security, but for today’s young buyers, the dream of owning a home is slipping further away. Prices have skyrocketed, interest rates have climbed, and wages haven’t kept up. This isn’t just a personal struggle, it’s a generational shift that could have long-term consequences for the economy.

So, how did we get here? And more importantly, what can parents do to help their kids navigate this new reality?

The Numbers Tell The Story: Then Vs. Now

To understand WHY homeownership has become so difficult, let’s compare past and present:

YEAR	MEDIAN HOME PRICE	MEDIAN HOUSEHOLD INCOME
1980	$47,200	$21,020
2000	$119,600	$42,148
2024	$417,700	$74,580

*Sources: Federal Reserve, U.S. Census Bureau, Freddie Mac*

What’s Clear?

• Home prices have increased nearly 10X since 1980, but wages have only tripled.
• Even compared to just two decades ago, the cost of homeownership has risen dramatically.
• Higher interest rates today make it harder for buyers to afford mortgages.

The Result? More young adults are stuck renting, delayed homeownership, or relying on families support in order to buy.

Why This Matters: Homeownership & Wealth Building

Homeownership has long been the foundation of middle-class wealth. According to the Urban Institute:

• Homeowners have a median net worth of $225,000 compared to $6,300 for renters.
• Real Estate appreciation allows families to build generational wealth over time.
• Homeowners are more financially stable in retirement.

BUT if fewer young adults can buy, the wealth gap will continue to widen, creating long-term economic disparities.

The Role Of Parents: How You Can Help Bridge The Gap

If homeownership remains out of reach for many young buyers, what can parents do? Here are some smart, sustainable ways to help:

1. Helping with the Down Payment

One of the biggest challenges young buyers face is saving for a down payment – Especially with soaring rents and student debt.

• Consider gifting funds (Up to $17,000 per parent, per year, tax-free as of 2025, per the IRS gift tax exclusion)
• Help with closing costs to ease the financial burden.
• Family loans offer lower interest rates than banks and keep money in the family

2. Acting as a Co-Borrower or Co-Signer

• If your child has stable income but doesn’t qualify for a mortgage, co-signing can help.
• It boosts their credit and helps them secure better loan terms.
• Caution: If they default, you’re responsible for payment.

3. Exploring Shared Equity Arrangement. Instead of gifting money, consider jointly investing in a property:

• You purchase part of the home alongside your child.
• When the home appreciates, both of you benefit financially.

This allows parents to help without giving away money – and it’s an investment opportunity for you as well.

The Big Picture: Why This Isn’t Just a Personal Issue

This generational housing gap isn’t just about individual families because it affects the entire economy:

Fewer young buyers = weaker housing demand, slowing market growth

More renters = less wealth accumulation, leading to long-term economic inequality.

Final thoughts

If we don’t address these challenges, we risk creating a generational permanently shut out of homeownership. The reality is that most young adults today can’t buy a home the way their parents did. The math doesn’t add up. But, that doesn’t mean it’s impossible. With the right strategy, parents can play a crucial role in keeping homeownership within reach for their children all while still protecting their own financial future.