Most Parents of Young Children Weigh Saving for a Down Payment

Most parents of young children are treating a future down payment much like a college fund, according to Coldwell Banker Real Estate's 2026 American Dream Report. The report, conducted with The Harris Poll and released Oct. 28, found that 82% of parents with children 5 and under are saving or have considered saving for their child's home down payment. The survey covered more than 2,000 U.S. adults.

Among those parents, 14% have already started saving for a down payment. That compares with 20% saving for their child's college and 28% saving for their own retirement.

Younger parents lead

Across all parents, a child's future down payment (56%) now ranks next to college (51%) and a first car (49%) as a savings goal. Of Gen Z parents, 85% have considered or started saving for one, as have 82% of millennial parents, 70% of Gen X parents and 51% of baby boomer parents.

Mary Lee Blaylock, president of Coldwell Banker Affiliates, said agents are "increasingly sitting down with buyers and their parents at the same table, mapping out down payments, timelines and what's realistic in this market."

Family money, often with strings

Of homeowners, 15% received money from family or friends for their down payment, rising to 26% among Gen Z homeowners. About 71% of those who got help say they are expected to pay it back. Half of Americans (51%) have helped or considered helping a relative with a down payment. Personal savings remain the main source at 44%, while 17% used or expect to use a gift or loan from family or friends.

Some buyers are teaming up outside the family: 7% of Americans have co-bought or are co-buying a home with a friend or other non-romantic partner, up from 4% in 2025.

Attitudes toward ownership

Views on homeownership held steady from last year. In the survey, 89% called buying a home an admirable achievement, and 85% said it is part of the American Dream for most Americans, unchanged from 2025. Even so, 63% said buying in the next year would leave them "house poor."

Among Gen Z respondents who do not yet own, 28% would choose their dream home over their dream job and 25% over finding their ideal partner. If money were no object, 80% of Americans would choose to own. The top dream-home feature was enough bedrooms for everyone to have their own room, at 36%.

Source: HousingWire