Lingnan University’s School of Graduate Studies examines intergenerational housing support from the perspective of parents. The results show that only 26 per cent surveyed parents plan to provide financial assistance to their children for home purchase, while 37 per cent believe that subsidising children’s property purchase is not their responsibility.
The research team comprised scholars from Lingnan University’s School of Graduate Studies, the University of Amsterdam, and University College London. Between 2020 and 2021, the team conducted a random telephone survey of 1,012 parents living in Hong Kong SAR with adult children aged 25 to 35, along with in-depth interviews with nine parents. To capture perspectives from families of different socio-economic backgrounds, the study includes respondents from a range of tenures: homeowners (private and public), and public rental housing (PRH) tenants.
The survey found that 67 per cent of parents believed their children lacked the financial capacity to purchase a home independently. Only about one in four (26%) parents plan to provide financial support for home purchase within the next five years, while 37 per cent of parents consider it not their responsibility to subsidise their adult children. Among parents who plan to provide financial support, 32 per cent would consider giving cash directly, 48 per cent plan to use a combination of loans and gifts, and 14 per cent prefer loans only.
Among parents who do not plan to provide financial support, over half (56%) allow children to continue co-residing as a form of non-financial support, 35% reduce household contribution expectations, and 31% provide childcare assistance for grandchildren. Nearly half (45%) of parents agreed that the government has not effectively supported young adults to live independently, and 67 per cent hoped the government would increase the supply of subsidised housing to assist their children in achieving home ownership.
Some parents interviewed in depth noted that the current public housing income limits are relatively low, disqualifying highly educated children working in professional fields, creating a dilemma where children are ineligible for public housing yet cannot afford private housing. These parents tend to adopt a “loan, not gift” strategy to instil financial responsibility in adult children, strengthen their self-reliance, and prevent overdependence. Low-income parents, especially public housing tenants, tend to co-reside with children to manage living expenses in later life, and some families rely on children’s contributions to maintain household expenses.
Prof Maggie Lau Ka-wai, Research Associate Professor School of Graduate Studies and Programme Director of the Doctor of Policy Studies Programme at Lingnan University, said that whether in public rental housing or owner-occupied homes, housing has long been a key pillar of household security and the maintenance of living standards. The findings of the survey indicate that while lower-income public housing tenants have stronger financial incentives to retain savings and keep their children living at home, many owner-occupiers likewise feel uncertain about the future. Parents’ views and family strategies reflect a changing role of housing within Hong Kong’s broader welfare system, suggesting that the respective responsibilities of families and the Government in providing housing security may need to be rebalanced.
Prof Lau said, “Most respondents are aged between 51 and 70 and belong to Hong Kong’s post-war baby boom generation. Many benefited from government housing policies in the 1980s and 1990s and were able to purchase homes successfully. However, the findings show that although many parents believe they should help their children, they remain cautious about providing direct financial transfers. Only about one quarter indicated that they plan to assist their children in purchasing a home. Most prefer to offer loans, or a combination of loans and partial subsidies, to help with the downpayment. This reflects the limited resources of many homeowners and public housing tenants approaching retirement, as well as their expectation that adult children should take responsibility for their own lives. In addition, given that past policies facilitated home ownership for the older cohorts, many parents believe the Government likewise has a responsibility to assist the younger generation in addressing housing difficulties. Existing inequalities in housing tenure and asset distribution may persist across generations and even widen over time, further intensifying social disparities.”
Prof Lau added that unequal housing opportunities between generations have prolonged children’s reliance on their parents for housing, placing financial pressure on those nearing retirement who hope to remain self-reliant in old age. This situation may also delay young people’s plans for marriage and childbearing, with far-reaching implications for Hong Kong’s population structure and social mobility in the long term. She recommended that the Government take a more proactive role by increasing the supply of subsidised home ownership housing, such as Home Ownership Scheme and Green Form Subsidised Home Ownership units, and by reviewing the retirement protection system to reduce older adults’ dependence on financial contributions from their children, thereby enabling family resources to be more effectively used to support upward mobility for the next generation.
