How Parental Wealth Is Changing NYC Real Estate

Everyone wants a piece of the NYC real estate pie—and many are going to great lengths to get it. For first-time buyers, owning property in the city is no small feat. While the market has always been competitive, it’s becoming increasingly difficult to assess exactly who is buying. Some properties are purchased through LLCs to preserve anonymity, masking key demographic details about who holds the keys to the city.

But one trend is coming into clearer focus: the growing influence of parental financial support, or “parental co-buying.” More young buyers are entering the market with substantial help from their families—shifting the competitive landscape and pushing affordability even further out of reach for those going it alone.

Whether it’s a long-term investment, a future inheritance, or simply a gift, parents are stepping in with strong offers and all-cash deals that first-time buyers without that support often can’t match. One broker recently reported that 60% of her sales in the past two years involved parents buying for their children—and that these buyers represent a significant share of all-cash transactions.

This trend isn’t limited to NYC. A recent LendingTree survey found that 78% of Gen Z homeowners nationwide received down payment assistance, primarily from parents. And in global cities like New York, foreign buyers are also taking advantage of favorable exchange rates and developer incentives to purchase apartments for their children to use during school breaks or holidays—adding another layer of competition.

While many young buyers may feel conflicted or even embarrassed about relying on parental help—often viewing it as a sign of personal failure—there’s no denying that family money is playing a growing role in shaping the market. In the world’s wealthiest city, it's no surprise that well-resourced parents are stepping in to make sure their kids can own a piece of it.

Adding to the mix is a surge in the use of trusts for these transactions. In 2024, 28% of Manhattan homes were purchased through a trust, up from just 17% three years ago. Tax-savvy families are using this strategy to make long-term, strategic purchases for the next generation. As one Serhant agent noted, “In areas like the West Village, there used to only be older people who were wealthy. Now, it’s all 20-year-olds whose parents bought them a place.”

The rise of parental co-buying is undeniably shaping who owns property in New York—but it’s not the only path to homeownership. While family wealth can open doors, many buyers are still finding success through creative financing, trusted advisors, and patience in a fast-moving market. Understanding how these trends are influencing competition can help first-time buyers better navigate their options—and, in some cases, even level the playing field by planning ahead, getting pre-approved, or exploring emerging neighborhoods with strong long-term potential.