Americans Are Opting to Own Homes With Their BFFs Amid Rising House Costs; Gen Z Leads the Tribe

Have you ever thought of living with your best friend in school or college? The thought of living with the person with whom you have shared your laughter and tears and the craziest times sure seems alluring. As young professionals navigate the challenging economy, many are banking on their friendships amid the rising housing costs. Some young adults left their hometowns, thinking they would build or buy their own home in a new city, but taking a glance at the prices, they were discouraged. Americans are now embracing the concept of co-homeownership where your live-in buddy can be your best friend or a near and dear one.

Such a co-owned residence can be explained as a home acquired in a partnership where both parties have an equal stake, resulting in less financial burden on one person. There are several surveys and studies done on the patterns of how Gen Z and millennials react to this new trend and the results are astonishing.

Nearly 15% of Americans have already co-purchased a home with someone who is not their partner and 48% of them are considering doing the same. With 6 out of 10 Americans interested in renting or purchasing a home with their friends—of which 70% are the enthusiastic Gen Z—it is becoming difficult for single men and women to purchase a home in the United States on their own as it might hit their budgets. Therefore, 39% of the singles are interested in co-homeownership. Living with your partner is the most beautiful thing, but with jobs in different cities, it is becoming a distant dream. Hence, around 47% of men and 48% of women are ready to co-purchase a home with someone who is not their partner. Furthermore, 29% of the renters looking for a home are ready to co-invest in buying a home with a stranger or a friend. 

Singles who expressed their interest in co-purchasing a home with a non-romantic partner did so with their parents (29%), siblings (26%), and friends (26%). Purchasing a home together can have many other benefits, apart from living together with your best friend or better half. Some of them include:

– 67% of the respondents attributed sharing cost as the major factor.

– 56% of the homeowners said affording a better home was made easy with this option.

– 48% of them felt sharing responsibilities concerning the utility bills was simplified.

– 27% of the buyers experienced huge tax savings which is one of the factors for some people buying homes.

– 54% of co-owners revealed that purchasing a home in this setting turns out to be a lucrative investment opportunity.

– 17% of the people involved in co-ownership shared that their relationships were strengthened, be it romantic or friendship.

The housing industry may see this shift if the costs of homes do not come down. Co-ownerships may see some friendships strengthening even as partners have to face the sad reality of staying apart.