Gen-Z And Millennials Venture Into ‘Co-Homeownership’ To Ease Costs

The latest generation of adults have leaned into co-homeownership as a way to break into the housing market.

As the housing market becomes more expensive, aspiring Gen-Z and millennial homeowners are finding new ways to reduce their costs.

The latest generation of adults have embraced co-homeownership as a way to break into the housing market. CBS News spoke to some first-time homebuyers about what led to their decision to embark on the journey with friends or family.

“We bought our first property at 26,” shared Kwame Nkrumah, a person under 30 who bought a home with his friend Gilbert Nyantakyi in New York City.

“Very big risk that we took, but it felt good doing it with a partner. We mitigated a lot of risk.”

Nyantakyi added, “I would not be a homeowner in 2024 had we not co-bought.”

Given high interest rates and inflation, the housing market has not progressed much since reaching a record low of 63.1% in 2020. According to Bankrate, this rate for younger adults under 35 has also declined. Only 39% of those in that age group currently own a home.

White people remain at the helm of homeownership, with a rate of 74%. On the other hand, only 45.7% of Black people also hold this status. However, as the shift toward untraditional homeownership grows, so does the possibility to take part.

A new survey obtained by CBS also revealed that around 15% of homeowners split the purchase with a non-romantic partner. With this in mind, other companies have followed suit to streamline the process. Real estate startup Nestment seeks to be the go-to platform for potential co-homeowners.

Since its launch in 2021, they have assisted in drafting agreements for all parties involved. The company ensures the homes and each individual’s interest in the property remain protected.

“For the past 50 years, property prices have way outpaced wage growth, and that’s created an incredibly large gap,” shared Nestment’s Founder Niles Lichtenstein.

Individuals continue to work around higher prices and pursue their co-homeownership dreams, forming a new and attainable housing landscape for all.