Buying a home in Seattle has never been simple, and for younger buyers, affordability is an even bigger hurdle. What’s changing is how parents are stepping in, and in some cases, making all the difference.
According to the National Association of REALTORS® (NAR), the share of first-time buyers in the U.S. fell to just 24% between July 2023 and June 2024 - the lowest level on record. The median age of a first-time buyer is now 38. At the same time, an Intuit/Credit Karma study reported that around 38% of Gen Z homeowners received financial help from parents, whether through cash gifts, co-signing, or even co-ownership arrangements.
In high-cost markets like Seattle, this trend has real implications. Let’s break down what’s happening nationally, how it connects locally, and what parents and buyers need to know.
Key Facts at a Glance
| Topic | Data | Source |
|---|---|---|
| Share of first-time buyers (U.S.) | 24% (historic low, July 2023–June 2024) | NAR 2024 Profile of Home Buyers and Sellers |
| Median age of first-time buyer | 38 years old | NAR |
| Gen Z with parental help | ~38% received financial assistance (gift, co-signing, or co-ownership) | Intuit/Credit Karma survey (via Realtor.com) |
| Seattle/WA median home price | $650,000 (Aug 2025) | NWMLS |
| IRS annual gift-tax exclusion (2025) | $19,000 per giver per recipient | IRS |
| How lenders view gifts | Must include gift letter + proof of transfer | Fannie Mae Selling Guide |
What Parents Should Know
Helping a child buy their first home isn’t as simple as transferring money. There are rules and best practices that protect everyone involved:
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Document everything. Lenders require a signed gift letter and proof of transfer for gifted down payment funds.
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Mind the tax rules. In 2025, the IRS allows up to $19,000 per giver per recipient without triggering a gift-tax filing requirement. Larger amounts may require filing Form 709 - though actual taxes are often not owed due to the lifetime exemption.
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Get legal clarity. If co-owning, have an attorney draw up an agreement covering ownership percentages, monthly payments, maintenance, and exit strategies.
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Think long term. Decide in advance whether the help is a gift, a loan, or an investment stake and put it in writing.
Why It Matters for Seattle
Seattle’s housing market remains one of the most expensive in the country. As of August 2025, the median home price in Washington State was $650,000, with King County among the highest. For many young buyers, saving a down payment alone is simply out of reach.
Family assistance, when properly structured, can:
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Bridge the affordability gap between renting and buying.
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Enable multi-generational strategies, like co-purchasing a duplex and using one unit as rental income.
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Improve loan approval odds, since co-signers with stronger credit and income can help first-time buyers qualify.
Bottom Line
The data is clear: fewer first-time buyers are entering the market, and those who do are often older than ever. At the same time, a growing share of younger homeowners are relying on their parents to get started.
In Seattle, where prices are steep and competition is intense, structured family support can be the difference between sitting out and securing a home. Done right with documentation, legal clarity, and financial planning, it’s not just a helping hand, but a smart strategy for building long-term wealth together.
Disclaimer: HouseHack Seattle is not a lender, tax advisor, or law firm. This article is general information, not financial, tax, or legal advice. Always consult your lender, CPA, and attorney for guidance tailored to your situation.
