Apr 7, 2026
Picture this: You’re buying a home for your child so they can get a head start on life. The kicker? They’re not even in high school yet.
Some parents aren’t waiting until their kids are adults to help them get into the housing market. They’re buying property years, even decades, in advance.
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One family in Australia shelled out more than $500,000 for a two-bedroom apartment they plan to eventually hand over to their child.
According to People magazine (1), real estate agent Thomas Bale said the buyer’s child is between nine and 12 years old, and the purchase wasn’t unusual.
“They’re scared that one day, their 5-year old or 10-year-old will have to buy a home and they’ll be out of the market,” Bale told the Australian Financial Review. (2)
It’s a strategy that hits close to home for a lot of parents, especially in the U.S., where housing affordability has become a major barrier for young buyers.
Why parents are buying properties for their kids
The “Bank of Mom and Dad” isn’t new, but it’s usually been about helping adult children with a down payment. A New York Times (3) report shows how parents who built up decades of equity are stepping in to help their children get a leg up in the housing market.
But for parents like those featured in People, the fear of being priced out when their children are still young is real.
Home prices in the U.S. have surged over the last decade, while higher mortgage rates and a persistent shortage of homes have made affordability a growing challenge. As a result, younger buyers are entering the market later, if they enter it at all.
Data from the National Association of Realtors (4) shows first-time buyers now make up just 21% of all home purchases, which is a historic low. The median age of a first-time buyer has also climbed to 40, a sharp turn from when many people bought their first home in their late 20s.
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For parents anxiously keeping their eyes on the market, numbers like these may be the nudge they need to act.
Buying a property early could allow them to lock in today’s prices and potentially avoid even steeper costs down the road. It’s also a way to give their children a financial head start in a system where timing can make a big difference.
The trend is also driven by concern for their child’s future. As Bale explained, many parents aren’t just thinking like investors. They’re choosing homes they can picture their children living in one day, often close to their own neighborhoods.
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The pros and cons of buying early
For the families who can afford it, buying property years in advance has some advantages.
Real estate is one of the most common ways to build wealth in the U.S., and the earlier a property is purchased, the more time it has to potentially appreciate.
Some benefits include (5):
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- Long-term appreciation, since price growth can increase a home’s value over time
- Mortgage payments act as a form of forced savings, helping build equity
- Housing security, giving your child a place to live in the future and helping to hedge against affordability pressures
- The option to rent out the property and generate income while it gains value
Despite the upsides, there are some downsides to consider.
Real estate markets can shift, and buying too early or in the wrong location could limit returns.
There’s also the risk that life circumstances change. As Bale noted, one client bought a home for their child, only to move later, making the investment less practical.
Other potential drawbacks include:
- High upfront costs and ongoing expenses, including taxes, maintenance and insurance
- Less liquidity, since your money is tied up in property
- Uncertainty about the child’s future, including where they’ll want to live
- Budget strain if unexpected expenses arise
Is buying a home today for your child excessive? In today’s housing market, some see it as smart, proactive strategy.
With affordability getting worse and first-time buyers entering later than ever, some parents view early property ownership as a way to secure their child’s financial future before it slips out of reach. But like any major investment, it comes with trade-offs. Whether it pays off depends on timing, location and long-term planning.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
People (1); Australian Financial Review (2); New York Times (3); National Association of Realtors (4); National Association of Exclusive Buyer Agents (5)
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Jessica is a freelance writer with a professional background in economic development and small business consulting. She has a Bachelor of Arts in Communications and Sociology and is completing her Publishing Certificate.
