economy
This factor may determine whether you ever build wealth. You have no control over it.
Homeownership has long been seen as a cornerstone of the American Dream because it reliably builds wealth. But new research suggests your chances of ever acquiring a home may depend partly on something beyond your control: your parents' wealth.
TL;DR
- Parental wealth is a more significant factor in homeownership than adult income, especially in expensive markets.
- Children with homeowner parents have higher homeownership rates and more valuable homes, even with similar incomes.
- Wealth mobility is more challenging for children from lower-income families in expensive regions like California, Boston, New York, and Seattle.
- Wealth mobility is strongest in the Midwest and Southeast, where home prices are lower.
- Rising housing prices are increasing intergenerational inequality in homeownership.
- The study analyzed data for 3.4 million families, tracking children born between 1978 and 1986.