With homeownership expensive, parents are saving for their young kids' down payments

With homeownership expensive, parents are saving for their young kids' down payments A new survey found that 82% of parents with young kids are thinking about or already saving for their child's down payment. The Good Brigade/Getty Images It's never too early to set your kids up for future life milestones, new survey results suggest.An emerging trend includes parents prepping their kids for homeownership years in advance, said Mary Lee Blaylock, president of Coldwell Banker Affiliates.Coldwell Banker's September survey found 82% of parents with kids 5 and under are already saving or considering saving for their child's down payment. Fourteen percent of surveyed parents have already done so, compared to 20% who have already stashed money away for their child's college.Affordability is the key driver. Blaylock said young parents who have just achieved the American dream of homeownership realize exactly how expensive owning a home can be. Most Gen Z and millennial parents surveyed said they've either considered or already have begun saving.The average 30-year fixed mortgage rate has risen over the past few months, and remains above 7% for the week ending October 29. The Atlanta Fed tracks how much qualified income is needed in order for homeownership to make up no more than 30% of annual income, a standard affordability measure. As of August, that number is $126,849. Median household income is 32% lower."Historically, if you made the median income or you made below the median income, you could still be a homebuyer," said Domonic Purviance of the Atlanta Fed's Supervision and Regulation Division. "Well, that's less likely today." If you have the money, now can be a good time to look for a home, as there are more sellers than buyers and some deals available. Redfin data shows about 20% of active listings in September had a price drop, up 0.4 percentage points from a year prior, and that there were 929,000 buyers compared to 1.5 million sellers. The number of buyers has been trending downward, so sellers might not have a lot of offers."Builders are offering $10,000 or $20,000 in concessions, buying down mortgage rates and throwing in appliances," said Amanda Peterson, a Redfin Premier agent, in a news article. "I had clients walk away from a home they loved because the pantry was too small and they didn't like the laundry room — even after the sellers offered to alter the floor plan. There are so many homes for sale that buyers are holding out for one that checks every box."Older family members could also set their adult kids or young grandkids up to achieve the American dream of homeownership, Blaylock said. The Coldwell Banker survey showed 15% of homeowners received money for their home down payment from family or friends. Seventy-one percent of those who received family money said they expect to pay it back. While people can get help from others, Blaylock said people still need to save for a down payment and "can't just rely on pennies from heaven." Read next Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Madison Hoff is a reporter on Business Insider’s economy team. She covers the labor market, inflation, spending, and other data. In addition to covering new estimates and trends, her workforce reporting includes career pivots, job searching, and side hustles.She also covers downsizing, particularly people selling their houses to pursue RV living. She has also reported on how much teachers spend out of pocket and what it’s like being a caregiver.Her stories often cover the state of the economy, what experts are saying, and how people are navigating the workplace or their careers.Previously, she was a junior reporter and data editorial fellow on the Strategy team. Real Estate Housing