Gen Z is one of the people most likely to jointly purchase a home with family and friends. (iStock)
With home prices still out of reach for many buyers, some home buyers are turning to joint purchases with people other than their significant other, or JW surety bonds. research found.
Nearly 15% of Americans have purchased a home jointly with a family member or friend rather than a spouse or partner. A further 48% of those surveyed said they would consider co-purchasing with a non-romantic partner.
Buyers who purchased a home jointly with a non-romantic partner were most likely to choose to purchase with their parents. 29% of respondents bought their girlfriends with their parents, and 26% with siblings or friends.
Gen Z is one of the people most likely to buy together in this way. 70% of respondents who said they intended to jointly purchase were Gen Z. The overwhelming reason for buying with someone else was lack of funds to buy a home alone. One in four girlfriends of respondents cited this as a reason for inviting friends and family to buy with them.
Buyers say there are advantages to buying a home. 67% said group buying helped them cover costs, 56% said they were able to buy a better home, and 54% said group buying helped them buy a home as an investment property.
Whether you’re buying alone, with your partner, or with a partner other than your significant other, you need to choose the right lender that offers low interest rates. Credible allows you to view multiple mortgage lenders and provide personalized interest rates in just minutes, without affecting your credit.
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You need a high income to buy a house
and Housing prices remain high, a higher income is required to reasonably purchase a home. According to data, the average household income required to buy a home in 2023 increased from $88,000 to $107,000. National Association of Realtors.
“When factoring in the decline in housing affordability due to rising home prices and mortgage rates, household incomes for households that successfully purchased a home jumped nearly $20,000, topping six figures for the second time on record.” said Jessica Lautz, NAR Deputy Chief Economist.Vice President of Research Said In a statement. “In a still competitive housing market, wealthier homebuyers were able to offer higher down payments and even pay cash to get their bids accepted.”
It’s not just income level that has changed for the average homebuyer, other characteristics have changed as well. For example, 70% of recent homebuyers had no children under 18 living with them, the highest percentage in NAR’s history.
In 1985, the proportion of homebuyers with children was significantly higher. Only 42% of households had no children under 18.
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Some generations have given up on the dream of owning a home.
Gen Z, one of the younger generations, is one of the least likely to own a home. In 2023, 26% of Gen Z owned a home, a slight increase from 2022. Redfin research report.
Meanwhile, the percentage of millennials who own a home rose from 52% to 55% in 2022, despite rising prices. The homeownership rate for Gen X rose from 70% to 72% in 2023.
Although Gen Z homeownership rates are low, this generation is still expected to outperform older generations. Gen Z adults between the ages of 19 and 25 have higher homeownership rates than both Millennials and Gen Xers at the same age.
The homeownership rate for 24-year-old Gen Zers is 27.8%. At age 24, 24.5% of Millennials owned a home, and 23.5% of Gen Xers owned a home at age 24.
“Housing prices remain tough, but things are looking up for Gen Z,” said Darryl Fairweather, chief economist at Redfin. “Recent rent declines mean Gen Z can save more money for a down payment. Additionally, the job market is strong and in the remote work era, career opportunities are concentrated in expensive cities. That means many Gen Zers will have the option to live in a more affordable place. ”
No matter what generation you belong to, securing the right mortgage lender and interest rate can help keep your monthly payments affordable. Visit Credible to explore your mortgage options, compare interest rates and lenders, and receive a mortgage pre-approval letter in minutes.
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