Gen Z homeowners and, in some cases, their parents are banding together to combat the soaring costs of housing, according to a new Investopedia study.
According to real estate experts, co-buying—where two or more people pool their money to purchase a home—is growing in popularity as high housing costs prevent many people from becoming homeowners. According to surveys, younger consumers are more likely to follow this trend, but multigenerational co-buying within families is growing in popularity.
Co-buying distributes expenses and borrowing power among several sources of income, but it also adds shared credit risk, liquidity restrictions, and legal complications that may have an impact on financial flexibility and profits.
“The affordability issue is a real big problem for folks,” said Alvaro Moreira, Founder of Moreira Team MortgageRight. “And combining incomes, combining assets, does allow them to normally buy a home they’re more interested in. 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-Buying Assisting Americans with Homeownership
The trend of co-ownership is expanding. According to a 2025 survey by mortgage insurance company National MI and nonprofit financial literacy organization FirstHome IQ, 32% of Gen Z buyers (ages 18–24) and 18% of Millennials (ages 25–44) are thinking of co-buying.
Additionally, about 15% of Americans had bought a property with someone other than a love partner, according to a 2024 JW Surety Bonds survey, and nearly half of respondents said they would think about co-buying. The trend is a result of rising house costs and persistently high mortgage rates, which have driven many Americans out of the market.
According to Moreira, co-ownership enables buyers to purchase a larger home or a property in a more desired neighborhood in certain situations, while in others it helps them afford a home. Homebuyers can jointly own a property in a number of ways. One is known as “joint tenancy,” when ownership is distributed equally regardless of monetary contributions. Frequently utilized by members of the same family, ownership immediately passes to the other partners upon death and all parties must consent to a transaction.
Another is known as a “tenancy in common,” in which ownership shares are determined by monetary contributions. Individual shares may be inherited or sold without necessitating the sale of all parties. Friends or purchasers who contribute unequally frequently use tenancy in common.
According to Moreira, many families are using this tactic in addition to younger purchasers banding together to purchase homes. When buying a home, older parents are more likely to move in with their children, particularly if the property offers guest homes or other separate living areas.
“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.”
Legal Knowledge, Actions Helping Protect U.S. Homeowners
Pacaso, a real estate agency that specializes in co-buying agreements, states that in certain situations, co-owners may create a limited liability corporation (LLC) to oversee the equity agreement and the parties’ obligations.
“Co-ownership works best with people you trust and have compatible schedules and financial goals,” according to Pacaso. “The key is choosing co-owners who value transparency, communication, and shared responsibility.”
Real estate and legal experts stated that it is crucial for individuals purchasing a home together to set and record regulations prior to the acquisition, regardless of the identity of the co-owners.
“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. “Addressing these safeguards upfront helps you protect your investment and avoid conflicts that can drain both money and relationships.”
Additional Key Findings:
- Co-buying a property can improve relationships, according to one in four Gen Zers.
- Compared to males, women are 29% more likely to see shared duties like upkeep and repairs as a benefit of joint ownership.
- Just one in four Gen Zers are worried about the possibility of an unequal investment or default.
- Conflicts with co-buyers are 11% more likely to worry women than males.
- When it comes to co-buying a home, single people are 20% more likely than married people to see sharing the financial load as a benefit.
- Sharing expenses (67%), being able to afford a better home (56%), and investing opportunities (54%) are the three main benefits of co-buying a home.
In conclusion, the traditional route to property ownership is changing due to the idea of non-romantic co-buying. A sizable percentage of Americans are increasingly investing in homes with friends and family, according to JW Surety Bonds. A wider acceptance of shared financial responsibility is suggested by this trend, which is driven by economic considerations and a generational shift in beliefs. However, only time will tell with what becomes of the U.S. housing market and its accessibility to aspiring buyers nationwide.
