[quote=briansd1]I don’t think that many parents give houses to their kids. If that were to become a common trend, house prices would drop in the future because proportionately fewer young adults would need to buy houses.[/quote]
I don’t think it’s that common either. If you think about it, even at today’s price, that’s several hundred thousand dollar. If the national savings rate is near 0%, I don’t expect average American to be able to have that kind of money to pass down to their heirs. The rich have been doing it for a very long time. If you can afford to pass down a few hundred grand to your heirs, why wouldn’t you pass down a house instead, especially if you’re in CA. Just the prop 13 alone is enough reason to give your kids house(s) instead of cash.