*[…] In the study, the researchers divide parents into two groups based on financial wealth—that is, bank deposits, shares and mutual funds, not income.*
*“In 2005, the difference in homeownership at age 30 was around ten percentage points between the two groups. By 2017, the gap had increased to around 18 percentage points,” he says, stressing that this amounts to almost a doubling in just over ten years.*
*The study data extend to 2017. Public statistics do not suggest that it has become easier for young people without assistance since then: according to Statistics Norway’s 2023 living conditions survey, approximately one in four households that had bought a home during the previous four years had received help from their parents—a proportion that has remained fairly stable since 2012.*
*Among homebuyers under the age of 30, almost half received parental support, Statistics Norway’s 2015 survey showed.*
*A common objection is that children of wealthy parents are also more likely to have higher education and good incomes themselves, and that this is what explains the difference.*
*“We have accounted for the young people’s own income, education, wealth, place of residence, and whether they live with a partner, as well as for the parents’ income, education, and place of residence. These factors explain around half of the gap, especially the young people’s own income. The other half is related to the parents’ wealth itself,” says Juelsrud.*
*[…] The study documents four ways in which parents help their children enter the housing market. All are used more frequently by parents with substantial wealth:*
* *They transfer money from savings, shares, or mutual funds.*
* *They take out additional loans against their own home and use the money to help the child.*
* *They buy the home together with the child.*
* *They own a home that they sell to the child—often at a price well below what they would have received in the market.*
*When parents sell a home to their own children, the price is on average more than 25 percent lower than for comparable homes sold on the market. This corresponds to around NOK 740,000 in 2015 prices, or approximately NOK 1 million in today’s monetary value.*
*Together, these four channels explain more than half of the part of the difference that is related to parents’ wealth. The most important individual channel is that parents borrow more against their own home. The rest is probably due, among other things, to loan guarantees from parents and transfers that are not visible in the data.*
*However, according to Juelsrud, help with investing in housing amounts to far more than the security of owning one’s own home. “Owning your own home is in itself a source of wealth. Because the home is largely debt-financed, price growth generates high returns on equity. And the earlier you enter the market, the more years of price growth you benefit from,” says Juelsrud.*
*The researchers have also developed an economic model to calculate what this means over the life course. The calculations suggest that the opportunity to own a home greatly reinforces the importance of parents’ wealth for their children’s wealth in their early forties.*
bautofdi on
That’s probably the only way anyone under 35 will be able to buy a home, unless they hit it big on a random IPO after getting recruited out of college.
Parents with enough money and those that care enough will give their kids every advantage they can.
PlanetCosmoX on
Junk article that is clearly biased. You don’t even have to read it.
Rich parents are not the difference between those who have and those who do not have a house. The difference is: intelligence, planning, discipline, and effort.
The author is clearly a cricket who spent all their money on boos and personal interests and is now trying to pawn their lack of personal responsibility and lack of ability at planning and divesting their responsibility for their own failure on not having parents who paid their way.
They are the failure. Most homes bought are do to meticulous planning, cutbacks, discipline to build the down payment required to own a home.
Most social studies like this are garbage. They do not follow any principles, there is no attempt to isolate variables, and the results are pre-tailored to support a predetermined argument.
In no way is this research or any type of study that qualifies as research.
3 Comments
Excerpts from [article](https://www.uio.no/english/research/research-news/articles/2026/gap-in-ownership-og-housing-for-those-with-wealthy.html) by Group Lien Garbo, summarising [working paper](https://www.norges-bank.no/en/news-events/publications/Working-Papers/2023/wp-16-2023/) by Ella Getz Wold (BI), Knut Are Aastveit (Norges Bank and BI), Eirik Eylands Brandsaas (Federal Reserve Board), and Gisle James Natvik (BI):
*[…] In the study, the researchers divide parents into two groups based on financial wealth—that is, bank deposits, shares and mutual funds, not income.*
*“In 2005, the difference in homeownership at age 30 was around ten percentage points between the two groups. By 2017, the gap had increased to around 18 percentage points,” he says, stressing that this amounts to almost a doubling in just over ten years.*
*The study data extend to 2017. Public statistics do not suggest that it has become easier for young people without assistance since then: according to Statistics Norway’s 2023 living conditions survey, approximately one in four households that had bought a home during the previous four years had received help from their parents—a proportion that has remained fairly stable since 2012.*
*Among homebuyers under the age of 30, almost half received parental support, Statistics Norway’s 2015 survey showed.*
*A common objection is that children of wealthy parents are also more likely to have higher education and good incomes themselves, and that this is what explains the difference.*
*“We have accounted for the young people’s own income, education, wealth, place of residence, and whether they live with a partner, as well as for the parents’ income, education, and place of residence. These factors explain around half of the gap, especially the young people’s own income. The other half is related to the parents’ wealth itself,” says Juelsrud.*
*[…] The study documents four ways in which parents help their children enter the housing market. All are used more frequently by parents with substantial wealth:*
* *They transfer money from savings, shares, or mutual funds.*
* *They take out additional loans against their own home and use the money to help the child.*
* *They buy the home together with the child.*
* *They own a home that they sell to the child—often at a price well below what they would have received in the market.*
*When parents sell a home to their own children, the price is on average more than 25 percent lower than for comparable homes sold on the market. This corresponds to around NOK 740,000 in 2015 prices, or approximately NOK 1 million in today’s monetary value.*
*Together, these four channels explain more than half of the part of the difference that is related to parents’ wealth. The most important individual channel is that parents borrow more against their own home. The rest is probably due, among other things, to loan guarantees from parents and transfers that are not visible in the data.*
*However, according to Juelsrud, help with investing in housing amounts to far more than the security of owning one’s own home. “Owning your own home is in itself a source of wealth. Because the home is largely debt-financed, price growth generates high returns on equity. And the earlier you enter the market, the more years of price growth you benefit from,” says Juelsrud.*
*The researchers have also developed an economic model to calculate what this means over the life course. The calculations suggest that the opportunity to own a home greatly reinforces the importance of parents’ wealth for their children’s wealth in their early forties.*
That’s probably the only way anyone under 35 will be able to buy a home, unless they hit it big on a random IPO after getting recruited out of college.
Parents with enough money and those that care enough will give their kids every advantage they can.
Junk article that is clearly biased. You don’t even have to read it.
Rich parents are not the difference between those who have and those who do not have a house. The difference is: intelligence, planning, discipline, and effort.
The author is clearly a cricket who spent all their money on boos and personal interests and is now trying to pawn their lack of personal responsibility and lack of ability at planning and divesting their responsibility for their own failure on not having parents who paid their way.
They are the failure. Most homes bought are do to meticulous planning, cutbacks, discipline to build the down payment required to own a home.
Most social studies like this are garbage. They do not follow any principles, there is no attempt to isolate variables, and the results are pre-tailored to support a predetermined argument.
In no way is this research or any type of study that qualifies as research.