ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Millennials and Gen Z Embrace Collaborative Homeownership Strategies Amid Cost of Living Crisis

Homeownership remains a top priority for 42% of Americans who are currently not homeowners.
PUBLISHED APR 1, 2024
Cover Image Source: Homeownership Strategies | Unplash | Photo by Ian MacDonald
Cover Image Source: Homeownership Strategies | Unplash | Photo by Ian MacDonald

In the contemporary landscape of real estate, homeownership stands as a beacon of financial stability and personal achievement. However, for many Millennials and Gen Z individuals, the dream of owning a home seems increasingly elusive in the face of soaring prices and limited housing inventory. In response to these challenges, many young Americans are embracing collaborative homeownership strategies, such as purchasing property with friends or seeking financial assistance from family members.

Image Source: Unsplash | Photo by Tierra Mallorca
Image Source: Unsplash | Photo by Tierra Mallorca

According to a survey conducted by Credit Karma, homeownership remains a top priority for 42% of Americans who are currently not homeowners. To overcome financial barriers, over one-third of non-homeowners expressed willingness to share the purchase of a home with individuals other than their partners, including friends or groups of friends.

This sentiment is particularly pronounced among Gen Z respondents, with 59% showcasing openness to unconventional homeownership arrangements.

"I think we're just seeing young folks who maybe just feel that homeownership is absolutely not within their reach on one income, or maybe they're partners looking for other ways to get in. There's this new openness to other forms of ownership," Courtney Alev, consumer financial advocate at Credit Karma, told FOX Business.

House is something that everybody dreams of but there are lot of scams happening where fraudsters take away the money saved by people for their dream houses|Pexels|Photo by RDNE Stock project
Image Source: Homeownership | Pexels | Photo by RDNE Stock project

Despite the potential challenges associated with joint property ownership, such as decision-making conflicts or financial obligations, there is a growing recognition of the versatility and adaptability of homeownership models.

"There are challenges or complications that might arise when you have several people going in on a property, of course, but I applaud the creativity and people looking for other ways to accomplish a goal," Alev said.

"The silver lining of a lot of hard things going on in the economy is the realization that there's not one path. People can take different paths and buying with friends might be another way."

Representative | Pexels | christianne
Image Source: Representative Image | Pexels | Photo by Christianne

Besides exploring collaborative homeownership arrangements, young individuals use various strategies to accumulate savings and secure financial assistance. The survey also reveals that several respondents are willing to make lifestyle adjustments, such as reducing discretionary spending or working additional hours, to bolster their financial reserves.

Furthermore, a large number of Millennials and Gen Z individuals acknowledge the role of parental support in facilitating their homeownership journey. Approximately 18% of individuals who have never purchased a home expressed intentions of seeking parental assistance for their first home purchase.

Among Generation Z respondents, this figure surged to 44%, a considerable increase compared to the 16% of Millennials and 12% of Generation X respondents with similar plans. Whether through financial contributions or co-signing mortgages, parents play a pivotal role in empowering their children to achieve homeownership.



 

"Also, as hard as it can be, try not to get discouraged by market conditions. Interest rates are high right now, they were pretty low a couple of years ago, they'll probably go lower at some point, and they'll probably get higher again at some point," Alev said.

"There is a lot of unpredictability – what's most important is that you make that move when you're ready."

MORE ON MARKET REALIST
All of the sharks agreed that she had a great product and the drive to be successful a businesswoman.
17 hours ago
It's possible that the dog played a little part in making it easier for them to get a deal.
19 hours ago
Without the help of his wife, the contestant would have gone home empty-handed.
20 hours ago
The pawn store owner had a valid point since the item the guest had brought had numerous issues.
21 hours ago
The contestant got the first part of the puzzle right but wasn't able to solve it in time.
22 hours ago
"It's a lady's robe. A robe from 1750 is a very rare robe. The only other ones I know of this type, you'd have to go to Beijing," the appraiser said.
1 day ago
Harvey also got other hilarious answers, but nothing could match the woman's sass.
1 day ago
The Gronkowski family is famous for their contributions to America's sporting culture.
1 day ago
The expert said that the fossil was well preserved but still wasn't something extraordinary.
1 day ago
The expert revealed that the jewel was from the late-Victorian era with an exceedingly rare stone.
2 days ago
"I wouldn't have gotten this one at all. I only got "of the curve," but that was it," a fan said.
2 days ago
All of the other sharks said no to the entrepreneurs, but Mr. Wonderful saw value in the product.
2 days ago
The contestant might not have expected to even be on stage, let alone play such a great game.
2 days ago
Everyone in the studio loved the four-legged superstar who stole the show for a few seconds.
3 days ago
The founder of "Eat Your Flowers"just couldn't refuse the offer despite having others on the table.
3 days ago
Rick Harrison had several doubts from the start, but they were all cleared later on by his friend.
3 days ago
A fan also commented that they almost fell off their chair after hearing Rosa's answer.
3 days ago
The guest had also brought a couple of personal telegrams sent by the Palace to the original owner.
3 days ago
"I don't understand how people are not paying attention to the last few plays," a fan said.
4 days ago
More than his product, it was his story and his sharpness that impressed every single shark.
4 days ago