Studies show that more homebuyers, especially Gen Z, are considering co-buying homes to afford high housing costs. Real estate professionals note different co-ownership structures available, emphasizing the need for a written agreement to outline decisions, cost-sharing, and exit strategies. Co-buying spreads costs and borrowing power but introduces shared credit risk and legal complexities.

Co-buying is rising due to steep housing costs, with 32% of Gen Z and 18% of Millennials considering it. The trend is prevalent among younger buyers, with multigenerational co-buying also increasing. Housing prices continue to rise while mortgage rates remain elevated, pricing many Americans out of the market.

Co-ownership allows buyers to afford homes they’re interested in or purchase larger properties in desirable neighborhoods. Joint tenancy evenly shares ownership, while tenancy in common bases shares on financial contributions. Forming an LLC can manage equity agreements and responsibilities. Transparency, communication, and shared responsibility are key in co-ownership.

Real estate and legal professionals stress the importance of establishing and documenting rules before purchasing a house with co-owners. A written co-ownership agreement is essential for decision-making, cost division, and handling life circumstance changes. Younger buyers and families are increasingly teaming up to purchase homes together, with older parents often joining children in purchases.

Read more at Yahoo Finance: Can’t Afford That House? Find a Friend to Buy With