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This is a Quantitative Study study.

Illiquid Homeownership and the Bank of Mom and Dad

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Quantitative analysis shows parental transfers boost homeownership rates in young households, suggesting illiquidity affects wealth usage.

Parental transfers increase homeownership rates by 13 percentage points among young households, significantly impacting housing access.
Wealthy parents' contributions help mitigate borrowing constraints and promote sustained homeownership, essential in an illiquid market.
An overlapping generations model reveals patterns of interaction between parents and adult children regarding home purchasing.
Policies reducing entry barriers may inadvertently heighten reliance on parental wealth, indicating a complex relationship with liquidity.

Eirik Eylands Brandsaas (2025) studied this question.

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Quantitative analysis shows parental transfers boost homeownership rates in young households, suggesting illiquidity affects wealth usage.