If you’re part of Gen Z and dreaming of homeownership, you’re not alone—but you might need help getting there.

With home prices hitting record highs and mortgage rates hovering above 7%, buying a house in your 20s or early 30s feels out of reach for many. In fact, according to a recent Redfin survey, about 20–24% of Gen Z and millennial homebuyers now rely on financial help from family—often in the form of gifts or interest-free loans—to afford a down payment. And nearly 1 in 5 are delaying moving out just to save more money.

Let’s break down how Gen Z is navigating this new reality—and what you need to know if you’re thinking about leaning on family to help you buy a home.

Why Is This Happening?

Let’s do the math:

• The median home price in the U.S. is over $420,000
• A standard 20% down payment is around $84,000
• Add in closing costs, inspection fees, and moving expenses—and it’s easy to see why Gen Z is asking for help

Combine that with high rent, student loans, and inflation, and buying solo feels almost impossible for many first-time buyers.

So, family help is becoming more common—and sometimes necessary.

The Pros of Using Family Help

Getting financial help from your family can fast-track your path to homeownership. Here’s why it might work for you:

1. Buy Sooner

You can stop renting and start building equity instead of waiting years to save on your own.

2. Lower Monthly Payments

A larger down payment (thanks to family help) can mean smaller mortgage payments and even help you avoid private mortgage insurance (PMI).

3. Interest-Free Options

Family loans are often interest-free or low-interest, which saves you a lot compared to bank loans.

The Cons of Using Family Help

But it’s not all upside—there are also real risks and awkward situations to avoid:

1. Strained Relationships

Money can cause tension. If expectations aren’t clear, small issues can become big conflicts.

2. Gifting Rules & Taxes

If your parents gift you more than $18,000 in 2025, they may have to report it to the IRS. Always check tax rules.

3. Future Entanglements

If a parent or relative co-signs the mortgage, their finances and credit get tied to yours. That can affect everyone’s borrowing power.

How to Make It Work: Set Clear Terms

Before you accept money from family, have a frank conversation and make a plan. Consider:

• Is this a gift or a loan? If it’s a loan, what are the repayment terms?
• What happens if you miss payments? (If they’re co-signing, this affects them too)
• Are you both comfortable with the arrangement?

Put it in writing. Even if it’s informal, having a clear agreement helps avoid drama later. Use a basic promissory note or consult a housing attorney for peace of mind.

Tip: Keep the Bank in the Loop

If you’re using gifted funds, your lender will likely require:

• A gift letter stating the money doesn’t need to be repaid
• Documentation showing where the money came from

Be upfront with your lender early so there are no surprises during closing.

What If You Want to Do It Without Family Help?

Not everyone can (or wants to) ask their family for money—and that’s okay. Here are strategies to save up solo or with a partner:

• House hack: Buy a duplex or multi-unit home and rent out the other units
• Get a roommate: Even if you own, sharing the space helps cover the mortgage
• Set a savings goal: Use automatic transfers to build your down payment bit by bit
• Explore down payment assistance programs: Many local and state programs offer grants or forgivable loans for first-time buyers

Final Thoughts

Buying a home is a huge financial milestone—and it’s totally okay to get help from your family, as long as you do it smartly.

Set clear expectations, understand the pros and cons, and don’t be afraid to ask tough questions up front. Whether you’re leaning on family or saving solo, the key is to stay informed and build a plan that fits your situation.

You don’t have to do it like your parents did. You just have to do what works for you.