One in Five Baby Boomers Helped Kids or Grandkids Buy a Home

December 1, 2011 — baby boomers, down payment assistance, down payment gifts, housing market

Baby boomers want their kids to have the American Dream.  And why shouldn’t they?

One in five baby boomers has helped their child or grandchild buy a home by loaning them money, giving them a down payment, or co-signing a mortgage, and more than two-thirds of baby boomers want to provide this type of support in the future, according to a survey sponsored by Better Homes and Gardens Real Estate.

The survey also found:

• 10% of baby boomers say they will “definitely” provide their children or grandchildren with financial support for a down payment on a home, and at least half hope to do so.

• Those who have already provided past support are also most confident that they will do so again.

• Highest interest in providing support is reported among younger (age 45-54), more affluent (household income of $75,000+) baby boomers who have at least one adult child (age 18-34).

• Older (age 55+) and more affluent ($100,000+ household income) baby boomers are more likely than their younger or less affluent counterparts to have previously provided financial support.

• Across prior support and future interest, baby boomers show more interest in “gifting” or loaning money; they are least interested in co-signing loans.