With first-time buyers shrinking and prices rising, supporting your children’s first home purchase now could make a bigger impact than an inheritance later. In today’s housing market, the path to homeownership looks very different than it did for previous generations — and for many young adults, it’s becoming harder to even get started. According to the National Association of Realtors, first-time homebuyers accounted for just 24% of all buyers in 2024. That’s down from 32% the year before, and it marks the lowest share on record since the data began in 1981. On top of that, the average age of a first-time buyer has climbed to 38 years old — a big jump from the early-to-mid 30s that was the norm just a decade ago.
Why does this matter?
Homeownership has long been one of the most effective ways to build long-term wealth in America. It offers stability, potential appreciation, tax benefits, and a sense of security. But the earlier someone enters the market, the more time they have to let that investment grow. When people wait until their late 30s or 40s to buy, they lose out on years — sometimes decades — of equity growth. That delay can ripple through their financial lives, affecting everything from retirement savings to the ability to move up into a bigger home.
But here’s the catch: for many younger adults, the delay isn’t about choice. It’s about affordability. High interest rates, rising home prices, and tighter lending standards are putting first-time homeownership further out of reach.
This is where family support can make a life-changing difference.
If you’re a parent or grandparent who’s financially able to help with their first home purchase, that support can do more than just open doors — it can set them on a solid path toward financial independence.
That support might look like:
• Contributing to or fully covering a down payment
• Co-signing a loan to help with approval
• Offering a family loan with lower interest
• Paying for closing costs or moving expenses
• Providing guidance and helping them work with trusted professionals
And no — it doesn’t mean handing over a blank check. Even modest contributions, paired with smart financial advice, can make a big impact. It’s about helping them take that first step, which is often the hardest. I like to think of it as a living inheritance — a way to pass on wealth while you’re still here to watch it grow. It’s about making a meaningful difference today, not waiting decades to pass it on after you’re gone. For many families, this shift in thinking is powerful. Instead of holding onto wealth until later in life, you can choose to invest in your children’s future now, when it matters most.
Want to explore how to help your child or grandchild can become a homeowner?
Now would be a great time to reach out to your trusted Realtor or myself. I’d love to help you navigate the options and make a plan that works for your family.
Holly Henbest has been a Desert Ridge resident since 2000 and has been a Realtor since 2006. She is the leader of The Henbest Team with Realty One Group. Holly is ranked in the top ½ of 1 percent of Realtors in Arizona and is a certified luxury marketing expert. She has been ranked #24 in the Top 50 Realtors by the “Phoenix Business Journal” for the past several years and recognized by “So Scottsdale!” magazine as a Real Estate Superstar for 2019, 2020 and 2021. She’s also been the #1 ranked realtor at Realty One Group/North Scottsdale for the past several years. Learn more at henbest.com.
