My husband and I bought our first home in 2022. We had chosen to combine our finances when we got married, so we split the price of the down payment and closing costs. As homeowners, we also share the responsibility for monthly mortgage payments and home repairs.
Honestly, I couldn’t imagine being able to afford a home without both of our incomes. Especially where we live, which is a relatively high-cost-of-living area.
The longer I report on mortgages and real estate, the more often I hear about people co-buying houses with people other than their spouses or partners. The share of people co-buying with someone other than a spouse increased from 25% in 2021 to 30% in 2025, according to a survey by CoBuy. The idea was interesting, but I struggled to picture the logistics.
Then, people in my social circle started talking about co-buying houses with their siblings or other family members. That’s when I truly viewed the idea as less of a theory and more of a reality. In fact, almost 60% of renters would consider co-buying a home with friends, according to a February survey by Rocket Mortgage.
Co-buying a home is hardly a new idea, but the trend is growing in popularity as housing becomes increasingly expensive. In an episode of Real Estate Today, the podcast by the National Association of Realtors, professionals broke down why and how co-buying is helping Americans become homeowners.
The host, Melissa Dittman Tracey, even calls co-buying “one of the hottest trends in housing right now.”
Co-buying a house with family, friends, or coworkers
Most people cited affordability as the main reason they would buy a home with friends, according to the Rocket Mortgage survey.
“The housing market is getting so expensive, especially in high-cost cities … I think people are just getting smart and co-buying together,” Nikki Merkerson, founder of the co-buying platform PairGap, says on Real Estate Today. “Combining incomes and assets and all the things you need to get approved for a home, it just makes sense.”
Affording mortgage payments with just one income is difficult, and in many cases, downright impossible. Unmarried people should have the option to build wealth through homeownership, too. For example, Merkerson helped an older mom and two adult children buy a place together. Two (or more) incomes makes all the difference.
Related: More on housing affordability
Merkerson once co-bought a home not with a family member or friend, but a coworker. They purchased a multifamily house together, and she eventually bought him out because it was her dream home.
The home has gained a lot of value since they originally purchased it, so she used co-buying to get into the market and start building wealth for her family. And that’s a huge benefit of buying a home with other people — you don’t have to be married to start building wealth through real estate.
You can even buy a home with strangers
Yes, co-buying property allows you to start building wealth even if you don’t have shared income with a spouse. But what happens if no one in your life wants to buy a home with you?
This might sound weird, but you can actually buy a house with one or more strangers.
In fact, Merkerson created the company PairGap so renters could co-buy with people they don’t know. You build an online profile and fill out a questionnaire about your goals, including why and where you want to buy.
“Once that profile is filled out, they can go into the pool to match with somebody that is compatible,” Merkerson explains. “Not only financially compatible, but also looking for the same goals. They’re both interested in building wealth through this partnership.”
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The contract even includes what Merkerson calls a “real estate prenup” that addresses issues such as each person’s share of ownership, what happens if one party can no longer afford payments, and the steps to take if a co-owner dies.
She says that sometimes the strangers both live on the property, especially if they buy a multifamily house with two separate living areas. Others use co-buying as an investment opportunity and just choose to be co-investors.
“You’re able to reach the goal of building wealth or even financial independence sooner than you would on your own,” she said.
PairGap isn’t the only platform helping renters co-buy houses. You can also look into the companies CoBuy, Joynt, and Pacaso to find the best fit.
The pros and cons of co-buying a house
Buying a house with a friend or even a stranger may seem like a far-fetched idea. This home-buying strategy is becoming more popular, though, and housing is only going to get more expensive as time goes on. If you want to seriously consider co-buying property, it’s crucial to think through the pros and cons.
- Pro: Afford a bigger or nicer house. True, co-buying is a great way to buy a home if you can’t afford one at all. But, depending on your situation, it’s also a tool for purchasing a larger home, such as a multifamily property, because you’re applying with two or more incomes.
- Pro: Start building home equity now. Houses generally gain value over time, and the longer you wait to buy a house, the longer you wait to build equity. Co-buying can help you get your foot in the door now.
- Pro: Share homeownership responsibilities. You aren’t just splitting the expenses of the down payment, closing costs, and monthly payments. You’re also sharing the costs of home maintenance and repairs. If one of you has the skills to take care of home issues yourself, you’re in an even better position.
- Con: All parties are responsible for the loan. You’re placing a lot of trust in another person. If they can’t afford their portion of the monthly payment, you could face a late fee, a ding to your credit score, and eventually even foreclosure.
- Con: Potential impact on your relationships. If you buy with someone you know, any financial or practical issues that come with homeownership could hurt your relationship. It’s crucial to communicate your expectations both before signing on the dotted line and after closing day.
