Family Money Boosts Chances of Homeownership for Californians

Buying a home in California is increasingly a matter of generational wealth.

1 minute read

August 28, 2018, 8:00 AM PDT

By Elana Eden


An analysis by KPCC of more than 600,000 FHA loans found that Californians increasingly rely on family support to buy their first homes. That trend has prompted concern among experts that today's housing market is fueling inequities produced by past racial exclusion. 

"Back in 2011, about one in four FHA loans in California included down payment money from relatives. Today, it's one in three," report David Wagner and Aaron Mendelson. In many parts of the state—from East San Jose to South Central LA—fully half of FHA borrowers received funds from their families.

The bigger the role of family wealth in homeownership, the worse the racial wealth gap is likely to become, researchers told KPCC: White families can often transfer wealth to their children precisely because they were favored by government policies around homeownership, while families of color who were excluded from owning a home now have less of a chance to help their children afford one.

Tuesday, July 31, 2018 in KPCC

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

7 hours ago - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City