Summary
With housing prices having risen by 56% since February 2020, many people are choosing to buy homes with friends rather than alone or with romantic partners. This trend helps buyers handle the high costs, which have been driven up by a shortage of available homes and high mortgage rates. In areas like California, rising costs make it especially challenging for individuals to afford homes on their own.
Key Facts
- Home prices have increased by 56% since February 2020.
- The rise in prices is due to a shortage of homes, which results from high demand, limited construction, and expensive materials.
- High mortgage rates discourage current homeowners from selling their homes, adding to the shortage.
- About 15% of recent homebuyers have purchased a home with a friend or relative.
- Two people buying together can better manage the higher costs, which is important in places like California.
- In California, median earners may need a six-figure salary increase to afford a typical home.
- Co-buying with friends is an increasing trend as affordability issues persist.
