The old joke: Because you never stop paying for it. Ha. Real funny these days, eh? But why do we simply assume that we should own a home? Is it a good idea? Should Mom and Dad sell theirs? A portion of it? Who gets it when they pass?
Homeownership has long been the cornerstone of the American Dream, to own a plot of land that is yours. It stands to reason that this deeply ingrained desire is a reaction born out of centuries of the pervasive feudal and caste systems which prevented this.
And by chasing the American Dream, Mom and Dad and Grandma and Grandpa won at the Game of Life, congrats! Owning a home has provided tangible, daily value as a place of shelter (and hopefully joy and love). The property has increased in value, making it a good investment. And it has saved the family on taxes, with the mortgage interest deductions and other policies.
And yet, owning a home is not for every family. It’s hard to earn enough for a down payment. What are the interest rates on the loan? What about homeowners insurance? Property taxes? Ongoing expenses and maintenance? Per our friends at Morning Brew, “an analysis conducted by the Wall Street Journal found that costs went up in the following categories between 2019 and 2025: emergency repairs (up 175%), home maintenance (85%), insurance (72%), interest (35%), and property taxes (31%).” Yikes!
And yet, despite all of this, owning a home remains central to our view of family wealth. It is likely the largest asset in most people’s estate. It is likely viewed as a nest egg for Mom and Dad and as the bulk of the inheritance for the Next Generation. But with pinched supply, rising costs, and the current interest rate environment, what are the Next Generation to do?
As Mom and Dad live longer (yay!), the inheritance process is delayed. Life and homeownership is also more expensive these days for everyone, and especially for those early in their career. We all need a bit of help now and again.
Stories are surfacing about friends pooling together to buy a property. Some parents are helping the Next Generation via gifts, loans, and tapping their own illiquid equity for a down payment. Some parents choose to purchase a home and have the Next Generation be the landlord because it is “a good adulting experience.”
The family home is not only functionally valuable but has many financial benefits too. So as hard as it is to become a homeowner, it’s still a net win. That said, reframing the family home as a tool to leverage like all other investments, rather than something sacred, could help our families move forward…