For a lot of would-be first-time buyers, affordability is the thing that's standing in the way. But some buyers are getting creative and finding a way to still make the numbers work — and that's through co-buying.

The dream is still alive. The math just isn't working for everyone.

Young people haven't given up on the dream of owning a home — not even close. According to FirstHome IQ, homeownership still ranks among the top life goals for the next generation.

The problem? 73% of Gen Z and millennial buyers cite affordability as the reason for not making homeownership a priority. And it shows. First-time buyers now make up just 21% of all home purchases — the lowest share since the National Association of Realtors started tracking the data in 1981.

73%
of Gen Z and millennial buyers say affordability is why homeownership isn't a priority right now.
Source · FirstHome IQ
21%
first-time buyer share of all home purchases — the lowest since 1981.
Source · NAR
The affordability gap, in two numbers.

But still, some buyers are making it happen. And a portion of them are turning to co-buying to get their foot in the door.

So, what's co-buying?

Co-buying means purchasing a home with someone else — a friend, sibling, or unmarried partner. You combine incomes, split the down payment, and share monthly costs. For some people, it's a creative way to turn "someday" into a concrete move-in date that's just around the corner.

And it's catching on fast. According to CoBuy.io, 64 million Americans now co-own a home with someone they're not married to. In fact, nearly a third of home purchases now involve co-buyers.

Co-buyer share of home purchases
31.5%
Roughly one in three home purchases today involves co-buyers.
Source · CoBuy.io
It's not fringe anymore — it's a third of the market.
First-time buyers, share of all purchases
Historical context — first-timers used to make up roughly 4 in 10 deals.
1981
44%
2010
50%
2020
31%
Today
21%
Source · National Association of Realtors Lowest share on record
First-timers are getting boxed out — and looking for new ways in.

Why it works

Here are a few of the top reasons buyers are going this route, according to NerdWallet:

Quicker path to ownership
Two or more people can save up a down payment a lot faster than one. Less time waiting, more time building equity.
More purchasing power
Multiple incomes mean a nicer home or a better neighborhood — the home you actually want, not just the one you can barely afford alone.
Easier loan qualification
Combined incomes can lower your debt-to-income ratio, which lenders calculate across all borrowers — making approval more straightforward.
Lower housing costs
Splitting a mortgage payment can make owning less expensive than renting — and shared costs make repairs and renovations more manageable too.
Four reasons co-buying pencils when buying alone doesn't.

Things to keep in mind

If you're considering going this route, there are some things worth thinking through. Co-buying works best with people you trust and share financial goals with. Before moving forward, make sure everyone agrees on how costs are split, who handles what, and what happens if one person wants to sell down the road.

That's why a written co-ownership agreement can be a smart move. It keeps everyone on the same page and helps avoid headaches later. Think of it less like a legal formality and more like a game plan for your investment.

Before you sign
Put it in writing — the co-ownership game plan.
  • ✓
    Ownership shares. Who owns what percentage, and how that percentage was decided.
  • ✓
    Cost split. Down payment, monthly mortgage, taxes, insurance, maintenance, utilities — line by line.
  • ✓
    Decision-making. Who approves repairs, renovations, refinancing, or new tenants — and what threshold requires unanimous agreement.
  • ✓
    Exit plan. What happens if someone wants out — buyout terms, right of first refusal, forced sale provisions.
  • ✓
    Life events. Job loss, marriage, kids, death, divorce — how the agreement handles each scenario.
  • ✓
    Dispute resolution. Mediation, arbitration, or court — agreed upfront, before anyone is upset.
A co-ownership agreement is a game plan, not a formality.

Bottom line

Affordability challenges are real, but they don't have to mean waiting indefinitely. Co-buying is helping some first-time buyers stop waiting and start putting down roots.

If you're curious whether it could work for your situation, let's talk. Reach out today and we'll figure out your path to homeownership together.