‘If your parents are homeowners, you’re more likely to be a homeowner,’ expert says. Here’s why

If your parents own a home, it can significantly increase your chances of becoming a homeowner yourself.

This is because homeowner parents are more likely to help their children financially with down payments and guidance on the home buying process.

Parents who own homes can provide direct financial assistance such as gifting money or loans for down payments.

They may also allow their adult children to live with them to save money and learn hands-on about homeownership.

This advantage stems from the intergenerational transmission of status.

If your parents are more financially secure, you tend to be as well.

This includes homeownership, which has long been seen as a key indicator of financial stability.

Studies have shown a strong link between parental homeownership and children’s homeownership rates.

Children of homeowners have higher rates of homeownership, especially when combined with higher household incomes.

Unfortunately, for those whose parents are not homeowners, the path to homeownership can be more challenging.

Rental households often have less space and flexibility to accommodate multiple generations, making it harder for young adults to save money or gain firsthand knowledge about homeownership.

Cultural factors also come into play.

If you grow up in a household where homeownership is valued and discussed, you are more likely to see it as a desirable goal yourself.