Baby’s First Home: Parents Are Now Saving for Their Kids’ Down Payment Before Kindergarten

While college funds have long been the standard for forward-thinking families, surging housing costs have prompted parents to begin putting money aside for their child's first home before they even enter kindergarten.The 2026 American Dream Report, released on Wednesday by Coldwell Banker Real Estate, found that 82% of parents with children aged 5 and younger are actively saving or have considered saving for their little one's future down payment. "It's just another way that families are coming together and oftentimes pooling their funds together so that eventually those younger kids are able to enjoy financial security that comes with homeownership," Mary Lee Blaylock, president of Coldwell Banker Affiliates, tells Realtor.com®.Although interest in planning for the future is high, execution is still in its early stages: Only about 1 in 7 parents (14%) of preschool-aged kids has already started saving money for a child's home decades ahead of time.Younger parents are at the forefront of this nascent trend, with 85% of Gen Z and 82% of millennials considering or actually starting to save down payment funds, compared with 70% of Gen X and 51% of baby boomers.Across all generations of...