Why is this happening?
Nearly 25% of those who have bought homes with non-romantic partners revealed they couldn’t have afforded a home on their own, according to the JW Surety Bonds survey.
The study further breaks down whom the respondants would prefer to co-own property with — with friends and siblings coming in at almost equal levels.
The company also discovered that more than half of platonic co-homebuyers are millennials, just like Modares. Millennials, the oldest of whom are now in their early 40s, have lived through two recessions and skyrocketing housing prices.
In fact, mortgage rates and soaring housing costs have become so high that even wealthy young Americans are turning their backs on the dream of home ownership.
Waiting until marriage to buy property has also become increasingly more difficult, given skyrocketing housing prices and the fact that people are marrying later (if at all).
In 1980, the average age for grooms was 25 years old, while the average age for brides was 22, according to Census data. In 2023, the data shows that those ages have increased to 30 and 28, respectively.
Stop overpaying for home insurance
Home insurance is an essential expense – one that can often be pricey. You can lower your monthly recurring expenses by finding a more economical alternative for home insurance.
SmartFinancial can help you do just that. SmartFinancial’s online marketplace of vetted home insurance providers allows you to quickly shop around for rates from the country’s top insurance companies, and ensure you’re paying the lowest price possible for your home insurance.
Explore better ratesWhy this may become a trend for boomers
Though millennials are the driving force behind this co-buying trend, it’s something that 9% of boomers have done too, according to the JW Surety Bonds survey.
The trend may even become more popular for older adults, as many are starting to live with roommates. Around 913,000 Americans aged 65 and older live with roommates who aren’t relatives or spouses — nearly double the amount since 2006, according to a study from Harvard University’s Joint Center for Housing Studies (JCHS).
Not only does this save seniors on rent, but on the overall cost of aging. Only 13% of 75+-year-olds living alone could afford assisted living without dipping into assets in 97 U.S. metros, according to the JCHS report.
The benefits of owning a home together in old age go far beyond just the financial ones. It can also help you mitigate health care costs. Your roommate can help you with day-to-day tasks, as well as split caregiving costs.
Alternative real estate investments
However, if you’re not interested in recreating a real-life episode of The Golden Girls, there’s another possible option.
You can take advantage of unique real estate arrangements such as real estate investment trusts (REITs). These trusts own real estate investments, like apartment buildings and shopping centers, that make profit.
The way you get money is by receiving dividends from the rent that these properties collect. You reap the rewards without any of the landlord hassle.
Sponsored
Follow These Steps if you Want to Retire Early
Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.
Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.
