Can’t Afford That House? Find a Friend to Buy With

Housing has gotten so expensive that Gen Z homebuyers, and in some cases their parents, are joining forces to meet the skyrocketing costs.

Co-buying, where two or more people combine finances to buy a home, is becoming more popular as steep housing costs are creating a barrier to homeownership for many, according to real estate professionals. Surveys show the trend is more prevalent among younger buyers, but multigenerational co-buying within families is becoming more common. 

“The affordability issue is a real big problem for folks. And combining incomes, combining assets, does allow them to normally buy a home they’re more interested in,” said Alvaro Moreira, founder of Moreira Team MortgageRight, a Georgia-based mortgage lender. “I think it’s kind of a sign of the times where they just simply don’t have the income, but together, they can qualify.”

Co-ownership is a growing trend. Among Gen Z buyers (ages 18-24), 32% are considering co-buying, compared with 18% of Millennials (ages 25-44), according to a 2025 survey from nonprofit financial literacy organization FirstHome IQ and mortgage insurance provider National MI.  And a 2024 survey from JW Surety Bonds found that nearly 15% of Americans have purchased a home with someone other than a romantic partner, while almost half of those surveyed said they would consider co-buying.

The trend comes as housing prices continue to rise while mortgage rates remain elevated, creating costs that have priced many Americans out of the market. 

Types of Home Co-Ownership

In some cases, Moreira said co-ownership helps buyers afford a home, while in others, it allows them to buy a larger home or a property in a more desirable neighborhood. There are several ways that homebuyers can jointly own a home together.

One is called “joint tenancy,” in which ownership is shared evenly regardless of financial contributions. Often used by members of the same family, all parties must agree to a sale, and upon a death, ownership transfers automatically to the other parties.

Another is called a “tenancy in common,” where ownership shares are based on financial contributions, and individual shares can be sold or inherited without requiring all parties to sell. Tenancy in common is often used by friends or homebuyers who make unequal financial contributions.

Legal Documentation Can Help Protect Co-Owners

In some cases, co-owners can form a limited liability company (LLC) to manage the equity agreement and the parties’ responsibilities, according to real estate firm Pacaso, which specializes in co-buying arrangements.

“Co-ownership works best with people you trust and have compatible schedules and financial goals,” according to the Pacaso website. “The key is choosing co-owners who value transparency, communication, and shared responsibility.”

Regardless of who the co-owners are, real estate and legal professionals said that it is important that people buying a house together establish and document rules before making the purchase.

“You need a written co-ownership agreement that spells out how decisions are made, how costs are divided, and how someone can exit the arrangement if life circumstances change,” wrote lawyers from Florida-based real estate firm The Law Office of Sam J. Saad III in a commentary.
“Addressing these safeguards upfront helps you protect your investment and avoid conflicts that can drain both money and relationships.”

Co-Buying Is Also a Family Affair

Moreira said that not only are younger buyers teaming up to buy houses together, but many families are also turning to this strategy. Older parents are more frequently going in with their kids on a housing purchase, especially if there are guest houses or other separate living spaces on the property.

“It kind of makes sense, especially with Gen Z and even older folks that maybe have kids, where the parents will actually come into the household to be more involved with the family,” Moreira said. “And it’s a good way to save on childcare as well.”