For many Gen Z buyers, homeownership might feel like an impossible dream due to rising home prices, high interest rates, and student loan debt. But instead of waiting years to buy solo, a growing number of young buyers are teaming up with friends or family to make that dream a reality.

Pooling resources to buy a home isn’t just a smart financial move—it’s also a way to build wealth, create stability, and enter the housing market earlier. Let’s explore why co-buying is trending and how it’s helping Gen Z break into real estate!

Why Gen Z Buyers Are Teaming Up to Buy Homes

1. Skyrocketing Home Prices & Higher Mortgage Rates

With median home prices reaching record highs, affording a home on a single income is increasingly difficult. By co-buying with friends, siblings, or even parents, buyers can split costs and qualify for a higher loan amount.

2. Sharing the Financial Burden

Buying a home together means splitting the down payment, mortgage, property taxes, and maintenance costs. This makes homeownership much more affordable and reduces the financial strain on one person.

3. Building Equity Instead of Renting

Many Gen Zers are tired of paying high rent without building any equity. By co-buying a home, they can start investing in real estate sooner and potentially profit when they decide to sell.

4. More Flexible Living Arrangements

Some buyers see co-owning as an opportunity to live with close friends or family while securing their financial future. Others may buy together but rent out portions of the home for additional income.

5. Access to Better Loan Terms

When two or more buyers apply for a mortgage together, they may qualify for lower interest rates and better loan options based on their combined income and credit scores.

How to Successfully Buy a Home With a Friend or Family Member

Thinking about co-buying a home? Here’s what you need to consider:

1. Choose the Right Co-Buyer

• Pick someone who shares your financial goals and homeownership vision.

• Have an open discussion about finances, responsibilities, and expectations.

2. Decide on Ownership Structure

• Joint Tenancy: Equal ownership with rights of survivorship.

• Tenancy in Common: Each person owns a specific percentage of the property.

3. Get Pre-Approved for a Mortgage Together

• Lenders will consider both buyers' credit scores and debt-to-income ratios.

• Having a higher combined income may improve loan terms.

4. Draft a Legal Agreement

• Outline who pays what, how costs are shared, and what happens if one party wants to sell.

• Work with a real estate attorney to protect everyone’s interests.

5. Plan for the Future

• Discuss exit strategies in case one person wants to move or sell their share.

• Decide on responsibilities for maintenance, repairs, and future upgrades.

If you’re eager to own a home but struggling to afford it alone, teaming up with a trusted friend or family member could be your ticket to homeownership. Just be sure to approach it with a solid financial plan, clear communication, and legal protections in place.

Matt Witte strives to be the best realtor in North Andover MA.

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