College has never cost more—and for many young Americans, the payoff has never felt less certain. With tuition soaring, student debt stubbornly high, and a cooling job market, a growing number of students and families are asking a once-unthinkable question: Is a four-year degree still worth it?
Now, parents aren't just questioning the calculus—they're changing the equation.
Instead of funneling savings primarily toward tuition, more families are redirecting resources toward what they see as a more tangible, immediate investment: helping their children buy a home.
According to a new Northwestern Mutual report, 74% of parents with children at home are considering—or have already begun—financial planning to assist with a future home purchase. Among them, nearly one in three (29%) say helping their child buy a home matters more than paying for college.
"We're seeing parents redefine what financial success looks like for their children—shifting from degrees to deeds," says Ashley Russo, a wealth management advisor at Northwestern Mutual. "They're looking for concrete ways to improve their children's economic starting point. A down payment, a cosign, or help with closing costs translates into immediate buying power and often functions as intergenerational seed capital."
The Wealth Logic Behind the Shift
The strategy has compelling financial underpinnings. Just as starting retirement savings early compounds the advantage, entering the housing market sooner can dramatically shape long-term wealth. A Realtor.com generational wealth report found that Americans who buy a home at age 30 have a 22.5% higher net worth by age 50 compared to those who wait until their mid-to-late forties.
That window of opportunity has been narrowing—but may be easing slightly. After years of relentless appreciation, U.S. home prices are projected to largely plateau in 2026, according to J.P. Morgan, potentially offering first-time buyers a rare pause. Yet the timing comes with sobering context: the share of first-time buyers has fallen to a record low of 21%, and the typical first-time buyer is now 40 years old—the highest age ever recorded by the National Association of Realtors. High mortgage rates and persistent cost-of-living pressures continue to lock many out.
For Gen Z, the path to homeownership increasingly runs through family support. Intuit Credit Karma reports that 38% of Gen Z homeowners already received financial help from relatives to purchase their home, and 44% of those who haven't yet bought say they plan to rely on similar assistance.
College Isn't Obsolete—But the Return Is Uneven
This pivot toward housing doesn't mean families are abandoning higher education altogether. Rather, Russo explains, many are trying to position their children to build wealth earlier and stay resilient amid economic uncertainty.
"That perceived immediacy and tangibility is powerful, especially when compared with the longer, less certain return profile of higher education today," she says.
The data reflects why that uncertainty exists. Over the past 30 years, average tuition at public and private four-year colleges has roughly doubled after inflation, per the College Board. The average federal student loan balance now sits at about $39,075 per borrower—and with repayments resumed, those obligations are tightening household budgets once again.
Meanwhile, youth unemployment has edged upward, and underemployment remains a persistent challenge for graduates entering a labor market that doesn't always align with their training.
Still, the outlook isn't uniformly bleak. Many college graduates continue to achieve strong earnings and career stability over time, and fears of widespread degree obsolescence haven't materialized. Instead, the return on a college education has become increasingly uneven—varying significantly by major, institution, and how graduates leverage their skills.
That variability is straining families. Wells Fargo reports that 64% of parents with Gen Z children (ages 18–28) still provide financial support for housing, expenses, or other needs. Yet more than half say this support is stretching their own finances—and jeopardizing retirement goals—often due to unclear conversations about how much help is needed, when, and whether it's expected to be repaid.
Business Leaders Advocate a Hybrid Mindset
Even prominent business voices aren't calling for an outright rejection of college—but rather a more nuanced reevaluation.
Warren Buffett, who still lives in the Omaha home he bought for $31,500 in 1958, has long minimized the weight of elite credentials in hiring decisions. "I never look at where a [CEO] candidate has gone to school. Never," he wrote in Berkshire Hathaway's 2024 shareholder letter. "There are great managers who attended the most famous schools. But there are plenty…who have benefited by attending a less prestigious institution or even by not bothering to finish school."
At the same time, leaders aren't dismissing education—they're reframing it. Hugo Sarrazin, CEO of Udemy, told Fortune that the future lies not in choosing between degrees and skills, but in combining them. "It's cohabitation," he said. "I think you start with a degree. There's a foundation that comes with a degree, but you need the skills to be relevant in the workplace."
A New Playbook for Families
For families navigating rising costs and uncertain returns, that hybrid mindset may offer the most practical path forward. A college degree alone may no longer be the guaranteed launchpad it once was—but pairing education with early wealth-building strategies, like homeownership support, could create a more resilient foundation.
As the Northwestern Mutual survey underscores, investing in a home remains widely viewed as a worthwhile, high-impact move. In an era of economic flux, families aren't abandoning ambition—they're adapting their strategy. The goal hasn't changed: securing a stable, prosperous future. The roadmap, however, is being redrawn—one down payment at a time.