Column: Should Your Children Buy A Home?

By Jeff Wiren, Principal Broker, Premiere Property Group, LLC for the Sherwood Sun

SHERWOOD, Ore. — Less than 10 years ago, this would be a ridiculous question to ask. However, in our current market, it is a question that comes up often with my clients. The fact is that it has become increasingly difficult for young people to purchase a home. According to the National Association of REALTORS® (NAR) Profile of Home Buyers and Sellers in 2025, the median age of a first time home buyer is 40, which is an all time high. Additionally, first time home buyers accounted for 21% of the market share of home sales in 2025, the lowest level since NAR began collecting this data in 1981. 

It doesn’t take a rocket scientist to figure out what is happening. Home prices have increased at an average rate that exceeds wage growth over the past decade, and interest rates have increased at a record pace over the past four years. Housing market affordability is a big problem: some might even say it is a crisis. This is why we see young people continuing to rent for longer periods of time. They simply can’t save up the money to make even a minimal down payment, and many of them have other debts, such as student loans that affect their debt to income ratio, making it impossible to qualify for a mortgage.

Even with this difficult news, the answer to the question is – YES! Your children should buy a home. Homeownership is the way that most Americans build wealth. According to Money.com, in 2025 the net worth of a homeowner was 43 times that of renter ($430,000 for a homeowner vs $10,000 for a renter) Additionally, home ownership provides stability and many other tangible benefits to increase overall quality of life.

So we know it has become exceedingly difficult for young people to buy a home, and we know that buying a home is still one of the best things a young person can do. How can we solve this problem and find practical solutions to change this trend?

1. Parents – help your kids by providing financial assistance if you are able. You are allowed to gift your children a limited amount without creating a tax burden on them, according to the IRS. I recommend discussing that with your children and offering them a financial gift as a portion of their down payment after they have saved the initial amount. For example, If they save 2/3, you provide the remaining 1/3 for a 20% down payment.
2. Multigenerational living – this is a common reality for many people. My suggestion is to accept it and be intentional about it. If you offer your adult children the opportunity to live with you so that they can save money for a down payment, there should be specific guidelines and an established timeline.
3. Young people – If your parents are allowing you to live with them in order to save for a down payment, respect that opportunity. Do your part by:
   1. Being frugal and saving diligently
   2. Stop spending money on luxuries like fancy coffee drinks and fast food
   3. Don’t go into debt – no new vehicles or credit card expenditures
   4. Create a reasonable budget and stick to it

I know that not everyone reading this can provide this type of opportunity to their adult children, and I know that some young people will have to find a path to homeownership without the help of their parents. The advice illustrated in bullet three above is still relevant, and will ultimately provide the best opportunity for a young person to become a homeowner.

If you’d like to discuss your specific real estate needs, call me. I will be honored to help. (503) 869-3513.