How Co-Buying a Home Helps with Affordability Today

With high home prices and mortgage rates, buying a home might feel out of reach. But co-buying—a trend where friends, family, or groups of people purchase a home together—could be a way to make homeownership more attainable.

What Is Co-Buying?

Co-buying means partnering with someone—such as a friend, sibling, or group—to purchase a home. Together, you share the financial responsibilities, such as the down payment, monthly mortgage payments, and maintenance costs.

According to a survey by JW Surety Bonds:

• Nearly 15% of Americans have already co-bought a home.

• Another 48% would consider co-buying as an option.

Why Is Co-Buying Popular?

Here are the top reasons why buyers are turning to co-buying (see graph below):

1. Sharing Costs (67%)

Splitting the expenses—like the down payment and mortgage—makes homeownership more affordable.

2. Affording a Better Home (56%)

Pooling resources might mean you can buy a larger, better-quality home or live in a more desirable neighborhood.

3. Investment Opportunity (54%)

A co-bought home could generate passive income if you rent it out, offering a potential return on your investment.

4. Sharing Responsibilities (48%)

Maintenance, repairs, and other homeownership duties can be shared, reducing the burden on any one individual.

What To Consider Before Co-Buying

While co-buying has its perks, there are key factors to discuss beforehand:

• Financial Agreement: Decide how costs will be split, from the initial down payment to ongoing maintenance.

• Responsibilities: Outline who will handle tasks like repairs, utilities, and decision-making.

• Exit Strategy: Plan for what happens if one party wants to sell or leave in the future.

As Rocket Mortgage puts it:
“Buying a house with a friend or multiple friends might be a great way for you to achieve homeownership, but it’s not a decision you should make lightly.”

How an Expert Can Help

Navigating the logistics of co-buying can be complicated, but a trusted real estate agent can:

• Help find homes that meet your combined budget and needs.

• Provide legal and financial insights.

• Guide you in creating a clear agreement to protect everyone’s interests.

Bottom Line

If today’s market challenges make buying a home seem impossible, co-buying could be the solution you’re looking for. But it’s crucial to plan carefully and ensure all parties are aligned.

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