Parents put fairness first when helping children buy their first home

This article has been reviewed according to Science X's editorial process and policies. Editors have highlighted the following attributes while ensuring the content's credibility: New Curtin University research has found parents want to treat their children equally when helping them buy their first home. The findings are published in the International Journal of Housing Policy.

With housing becoming increasingly difficult to afford, many Australian parents are stepping in to help their children buy their first home. The study surveyed 831 parents from families with two children, and researchers found parents are largely guided by fairness, with the way they help one child strongly linked to the support they plan to give that child's sibling. Lead author and Ph.D. candidate Paul Vivian, from Curtin Business School, said parents wanted to help their children become homeowners while making sure they treated their family fairly.

"Our research shows when parents help one child buy a home, they are much more likely to help their other children too," Vivian said. "Parents appear to take a consistent approach, rather than simply favoring one child over another." The research also found parents were more likely to help children they believed were struggling financially. Parents were 16.2 percentage points more likely to help a child they considered poor or very poor than one they viewed as financially comfortable or wealthy.

The relationship between parents and their children also mattered, with children who shared a stronger emotional bond with their parents more likely to receive help. However, the research found little evidence parents consistently favored children based on their age or gender. One exception was that older sons with younger sisters were more likely to receive assistance than other sibling combinations.

The researchers also examined whether parents expected anything in return for helping their children buy a home. Just over half of the children due to receive assistance could expect help without any strings attached. For the rest, parents could anticipate something in return, such as repayment of a loan, a say in where or what type of home their child bought or help with their future care needs.

The findings showed parents who planned to help one child without expecting anything in return were also much more likely to offer the same type of support to their other child. Co-author John Curtin Distinguished Professor Rachel Ong ViforJ said family support could make a significant difference to young people trying to enter an increasingly difficult housing market, but it was not an option available to everyone. "Parental support can help young people overcome one of the biggest barriers to homeownership, which is saving enough money to buy a home," ViforJ said.