One-quarter (25 percent) of recent homebuyers who have kids living at home received a cash gift from family to help fund their down payment, more than double the 12 percent of recent buyers without kids who received such a gift, according to a new survey from Redfin.
Homeowners with kids living under their roof are also more likely to receive family help for mortgage payments. One in six (17 percent) homeowners with kids report receiving financial support from family to help pay their mortgage, compared to 8 percent of those without kids. And 11 percent of homeowners with kids have used inheritance money to pay their mortgage, versus 7 percent of those without kids.
Receiving family money is just one way people reported paying their housing expenses. Redfin also asked respondents about a number of other methods people commonly use to pay their mortgage. Homeowners with kids at home were more likely than those without kids to use nearly every method listed; that list can be found in the full report. They’re twice as likely to work a side hustle (23 percent vs. 12 percent), and nearly twice as likely to pull money out of retirement funds early (14 percent vs. 9 percent).
“Monthly costs are so high these days that I’m trying to find big homes for a lot of multi-generational families,” Julie Zubiate, a Redfin Premier agent in the Bay Area, said in a release. “A lot of clients who work in tech are looking for homes with ADUs so their older parents can move in, or maybe it’s a Gen Xer looking for a home that’s big enough for their early-20s kids to live in.”
U.S. housing costs have risen more than 40 percent since before the pandemic, with soaring home prices and mortgage rates making it difficult for many people—with or without kids—to afford a home. Half of homeowners with kids struggle to afford their housing payments, according to the survey. Homeowners without kids are roughly equally as likely to struggle.
Redfin said there are several reasons people with kids may be more likely to receive help from family with their down payments and/or mortgage payments:
- People with kids are more likely to buy larger homes with more features and neighborhood amenities, which cost more money. 68 percent of respondents with kids said indoor space is a “must have” they’d be unwilling to trade off for affordability, compared to 60 percent of those without kids. In fact, people with kids were more likely than people without kids to rate each of the 19 features we asked about as a “must have.” That includes things like proximity to highly rated schools and grocery stores, space to work from home and homeschool children, and low climate risk. It’s worth noting that people with kids tend to earn more money, which could be one reason they have bigger lists of must-haves. Roughly two-thirds (65 percent) of respondents with kids earn $50,000 or more, compared to 42 percent of those without kids.
- Parents may be more likely to provide financial help when it benefits both their children and grandchildren. Redfin Chief Economist Daryl Fairweather said it makes sense that parents are more likely to help their kids pay for housing when doing so also provides their grandchildren with a safe, secure place to live. They are helping multiple family members, including children who have no economic means to better their housing situation, Fairweather said.
- Homeowners with kids under their roof tend to be younger than those without. Nearly 7 in 10 (67 percent) of respondents with kids are Gen Zers or millennials, compared to 25 percent of respondents without kids. Younger people are probably more likely to ask for—and receive—help from their parents.
Redfin agents also report that multi-generational homes are becoming more common as it gets more expensive to buy homes. The financial help can go both ways: Older parents helping their grown children and/or adult children helping their parents.
These survey findings are from a Redfin-commissioned survey conducted by Ipsos in September 2024, fielded to 1,802 U.S. residents aged 18-65. The analysis of these results compares respondents who have children under 18 living in their home to respondents who don’t.