Many American parents are thinking about their children’s first home before the kids can even read. A September Coldwell Banker survey found 82% of parents with children aged five and under are saving or considering saving for their child’s down payment. Fourteen percent have already started, compared with 20% who have saved for college.
More Parents Saving for a Child’s Down Payment Than You Might Think, Survey Finds
Mary Lee Blaylock, president of Coldwell Banker Affiliates, said affordability is the main driver. Young parents who have just become homeowners see how costly it is. Most Gen Z and millennial parents surveyed have saved or considered it.
The numbers explain the worry. The average 30-year fixed mortgage rate stayed above 7% for the week ending 29 October. The Atlanta Fed says a household needs $126,849 in qualified income to keep housing costs to 30% of income, as of August. Median household income is 32% lower.
Some buyers have leverage. Redfin data shows about 20% of September listings had price cuts, with 929,000 buyers against 1.5 million sellers. Builders are offering concessions, and one agent said some buyers walk away over details like a small pantry.
Family help matters too. Of surveyed homeowners, 15% received down payment money from family or friends, and 71% of them expect to repay it. Blaylock cautioned that people still need to save and “can’t just rely” on windfalls.
