Perth: (The Conversation): As many young Australians struggle to enter the housing market, research shows the “bank of mum and dad” is often called on to help.

But what kind of financial support are parents willing to offer their kids? And how has that changed over time? That's what our recent survey of 1,725 Australian parents - mostly aged 45 to 64 - sought to find out.

More parents are stepping in

Despite growing research showing young people's reliance on their parents to buy a first home, we still don't know enough about how parents help, how much they spend, and the financial implications for themselves.

Earlier this year, we surveyed 1,725 parents using Qualtrics. Of them, 61% were aged 45-64, 34% were 65-69, and 5% were under 45. More than half - 994 parents - had helped at least one child buy a first home.

Of those whose children bought more than ten years ago, 44% had helped. For purchases five to ten years ago, 50% helped, and within the past five years, the figure rose to 58%.

Rent-free living overtakes gifts

Our survey found living rent-free in the family home has become the number one way parents helped in the past five years. Cash gifts remain important but are less common than a decade ago.

These findings, part of a wider study, highlight how families are responding to declining homeownership rates caused by unaffordable housing.

Broader trends

Among the 994 parents who helped over the past decade, 22% gave more than one type of help, often combining financial support with rent-free living. Homeowning parents provided more cash gifts and loans, while renting parents mostly offered rent-free living.

Loans increased sharply with income, reaching 41% among parents earning above A$200,000. Children of wealthier parents also benefited from second homes for rent-free stays, doubling their chances of homeownership.

Most cash gifts (78%) came from savings. For loans, 46% came from savings, 29% from home equity, and 12% from a second property.

Some parents went further: 19% co-purchased homes, 8% transferred property, and 8% gave early inheritances.

An entrenched wealth divide

Parental homeownership now transmits wealth across generations. Wealthier parents can assist through gifts and loans, but these carry risks, including financial abuse and lack of legal safeguards. Meanwhile, many young people lack access to such support, deepening the housing wealth gap. (The Conversation)