This study examines how parents’ homeownership and wealth influence young adults’ (ages 18 to 34) tenure choices. We show that the children of homeowners are 7 to 8 percentage points more likely to be homeowners than the children of renters, all else being equal. Additionally, a 10 percent increase in parental wealth increases a young adults’ likelihood of owning a home by 0.15 to 0.20 percentage points. The difference in parental homeownership and wealth explains 12 to 13 percent of the homeownership gap between black and white young adults. We also show that the stability of parents’ homeownership and the amount of wealth they possess also affect their child’s likelihood of owning a home.