Parents Are Buying Homes for Kids Priced Out of the Housing Market
Parents are increasingly helping their adult children purchase homes, whether that means co-signing a mortgage, giving money for a down payment or buying the property outright, according to real estate agents across the country.
In New York, Coldwell Banker Warburg’s Becki Danchik says she has never seen so many parents buying homes for or with their kids in her 15 years as a broker. Since January, she’s worked with four parent-child combo clients, three of whom are paying all cash.
“It has a lot to do with rental prices being so high,” she said. “They feel like it’s a waste to be throwing away money on rent when they can capitalize on the sales market right now.”
Families with means have long helped relatives find their footing as new homeowners, particularly in expensive metropolitan areas, agents say. But that assistance is crucial now more than ever, with sky-high home prices and mortgage rates above 5%. Plus, real estate is increasingly being viewed as a hedge against inflation and a better option than paying rent.