Strapped for cash but have dreams of owning a home? 🏡 With home prices through the roof (which probably needs to be replaced), many people decided to go in on home buying with their buddies. 🤝
In case you missed it, we first covered the co-buying trend back in May. Here, we’re checking back in to see if people are still feelin’ the vibe! 😎
Here’s Five Fast Facts on the co-buying trend:
- 📉 End of an Era? - According to data from Zillow, co-buying seems to be on the decline. In 2023, 14% of co-buyers reported purchasing homes with friends. This year, that number has fallen to just 7%.
- ✂️ Cut. It. Out. - Why is the trend cooling off? One reason people are thinking about going solo instead is the Federal Reserve’s interest rate cuts. Rate cuts lead to lower mortgage rates, making home ownership more affordable.
- 🪞 New Year, New Me - No, it’s not because of stolen snacks or leaving dirty dishes in the sink. Research shows that most co-ownerships end because of major life changes. Moving to a new location, getting married, or relocating for a new job are all top reasons for busting out of a co-ownership agreement.
- 🏘️ Older & Wiser - The real estate market has been insane lately, and it especially impacts first time home buyers. High costs are forcing people to put their dreams of a white picket fence on hold. Over the last decade, the average age of first-time homebuyers has increased from 31 to 35.
- 👨👩👦👦 Talkin’ ‘Bout My Generation - Another popular way for people to own a home is to purchase one with family members. Right now, one in every four Americans between 25 and 34 lives in a multi-generational home (at least two adult generations in the same house).
🔥Bottom line: The co-buying trend seems to be cooling off a bit, but the cost of home ownership sure isn’t. Sky-high home prices are still very much a reality. Owning a home is a big dream for many Americans and sometimes the only way to get there is to go in with a pal. Interest rate cuts may help lower mortgage rates, but are they enough to close the housing wealth gap? Find out what we think in this article.
Would you buy a house with friends?
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