If you’re a homeowner, you’ve likely accumulated substantial wealth simply by living in your home and watching its value appreciate. That equity you’ve built? It could be the key to helping your children step into homeownership and start building their own financial future.

In today’s market, affordability continues to be a hurdle, especially for first-time buyers. Even with stable income and responsible planning, many young adults find the dream of buying a home just out of reach. However, this is where the equity you’ve earned could have a life-changing impact.

According to data from Cotality (formerly CoreLogic), the average homeowner with a mortgage now has about $311,000 in home equity. That’s a significant amount of wealth, and more and more parents are choosing to use a portion of that equity to help their children become homeowners.

A report from Bank of America reveals that 49% of buyers aged 18 to 26 received financial assistance from their parents for their down payment (see chart below). While the data doesn’t specifically say how many of those parents tapped into their home equity, it’s highly likely that the wealth gained through homeownership played a role in enabling that support.

The beauty of this approach is that it goes beyond just numbers. Helping your children buy a home can be an incredibly rewarding way to pass on the benefits of your homeownership. It allows your children to start building their own equity, enjoy greater financial stability, and begin a new chapter of life with a strong foundation.

For many parents, it’s not just about providing a financial boost—it’s about being the reason their child gets to say, “We bought our first home.” That sense of pride and accomplishment is priceless. And according to Compare the Market, 45% of Americans who received financial help from parents or grandparents said they wouldn’t have been able to buy a home without it.

Bottom Line

Your equity could be the stepping stone your children need to become homeowners in a competitive market. It’s a way to turn the wealth you’ve built into a gift with lasting impact.

If you’re considering this path and want to learn more about how to make it possible, the best next step is to speak with a trusted lender and a financial advisor. And for personalized guidance or questions about your options, feel free to reach out to Mike Panza and the team at Panza Home Group. You can connect with them anytime at https://panzarealestate.com/team/mike-panza.