For generations, parents have put money aside to help their children pay for college or university. However, with housing affordability becoming an increasingly difficult challenge, a growing number of families are considering a different financial priority: saving for their children’s first home.
A new trend is emerging among parents who are thinking about their children’s financial futures. According to Coldwell Banker’s 2026 American Dream Report, 82% of parents with children five and younger are saving or have considered saving for their child’s future down payment.
In fact, 56% of parents surveyed have considered putting money toward their child’s first home, compared with 51% who have considered saving for college. Only 14% of parents with young children have actually started a home down-payment fund, however.
With rising property prices and mortgage costs making homeownership increasingly difficult for younger generations, parents are looking for ways to give their children a financial head start. Mortgage broker Lee Trett cautions that parents should prioritize their own financial security, including paying off high-interest debt and building an emergency fund, before taking on another savings commitment.
How Can Parents Save for Their Child’s First Home?
One option for Canadian parents is helping their adult children contribute to a First Home Savings Account (FHSA). These accounts allow eligible first-time homebuyers to contribute up to $8,000 annually, with a lifetime contribution limit of $40,000, while qualifying withdrawals are tax-free.
Parents can gift money to their adult children to contribute to an FHSA, helping them benefit from the account’s tax advantages. Other possibilities include gifting a lump sum toward a down payment or establishing a regular savings contribution.
According to Ottawa MDM’s financial-planning guidance, helping children purchase property requires careful planning, particularly when considering the financial and legal implications of family gifts or loans.
What Will the Housing Market Look Like in 10 Years?
Unfortunately, nobody can predict exactly what the real estate market will look like a decade from now. However, current forecasts suggest affordability will remain an important consideration for prospective buyers.
Forbes Advisor’s housing market analysis points toward gradual price growth and modestly improving inventory rather than an imminent housing crash. Its analysis also highlights how mortgage rates and limited housing supply continue to influence affordability.
For parents, this makes long-term financial planning particularly important. Starting early, contributing manageable amounts and remaining flexible could help children achieve homeownership, even if the housing market looks very different when they are ready to buy.
Editorial note: The 82% figure includes parents who have merely considered saving, not just those actively contributing. Also, the trend does not establish that education savings are being abandoned; many families may be planning for both.
