By Mike Lentz | The Mike Lentz Team – Keller Williams Realty
Co-buying a home means purchasing property with a friend, sibling, or unmarried partner to combine incomes and share costs. This strategy is helping many first-time buyers across South Jersey overcome affordability challenges by splitting down payments and monthly expenses. Nearly 1 in 3 home purchases now involves co-buyers nationwide, making it a viable path to homeownership for those willing to work with trusted partners.
For many would-be first-time buyers, affordability is the main obstacle standing between them and homeownership. But some buyers are getting creative and finding ways to make the numbers work through co-buying a home. This strategy allows friends, siblings, or unmarried partners to pool their resources and share both the upfront costs and ongoing expenses of owning property together.
Young people haven’t given up on the dream of owning a home, not even close. According to FirstHome IQ, homeownership still ranks among the top life goals for the next generation.
The Dream Is Still Alive Across South Jersey
The problem? 73% of Gen Z and millennial buyers cite affordability as the reason for not making homeownership a priority. And it shows. First-time buyers now make up just 21% of all home purchases, the lowest share since the National Association of Realtors (NAR) started tracking the data in 1981.
But some buyers are making it happen. And a portion of them are turning to co-buying to get their foot in the door. This trend is showing up in markets across Burlington, Camden, Gloucester, Salem, and Cumberland counties as buyers look for creative solutions.
What Is Co-Buying a Home?
Co-buying a home means purchasing property with someone else, like a friend, sibling, or unmarried partner. You combine incomes, split the down payment, and share monthly costs. For some people, it’s a creative way to turn “someday” into a concrete move-in date that’s just around the corner.
And it’s catching on fast. According to CoBuy.io, 64 million Americans now co-own a home with someone they’re not married to. In fact, 31.5% of home purchases involve co-buyers (see graph below):
Why Co-Buying a Home Works for First-Time Buyers
Here are just a few of the top reasons buyers are going this route, according to NerdWallet:
Quicker Path to Homeownership
If owning a home is a serious goal for you, buying with someone else can help make that reality on a shorter timeline. Two or more people can save up a down payment a lot faster than one. That’s less time waiting and more time building equity in a place that’s yours.
More Purchasing Power
With multiple incomes going toward the home purchase, you might be able to afford a nicer home or live in a more popular neighborhood. Sometimes teaming up means getting the home you actually want, not just the one you can barely afford on your own.
Easier Loan Qualification
Added income from more than one buyer can help with your debt-to-income (DTI) ratio. Lenders calculate this based on all the borrowers, which can strengthen your overall application.
Lower Housing Costs
Splitting up a mortgage payment multiple ways could maybe even make owning less expensive than renting. Plus, sharing costs can make repairs or renovations more manageable, too.
Things To Keep in Mind When Co-Buying a Home
If you’re considering going this route, there are some things you’ll want to think over. For starters, co-buying works best with people you trust and share financial goals with. Before moving forward, make sure everyone agrees on how costs are split, who handles what, and what happens if one person wants to sell down the road.
That’s why a written co-ownership agreement can be a smart move. It keeps everyone on the same page and helps avoid headaches down the line. Think of it less like a legal formality and more like a game plan for your new investment.
You’ll also want to consider how the local market might affect your strategy. Whether you’re looking at properties in Camden County with a median sales price of $350,000, or exploring more affordable options in Cumberland County where the median sits at $270,000, understanding what you can afford together is key.
Bottom Line
Affordability challenges are real, but they don’t have to mean waiting indefinitely. Co-buying is helping some first-time buyers stop waiting and start putting down roots in communities throughout our region.
If you’re curious whether co-buying a home could work for your situation, let’s talk. Schedule a quick call and we’ll walk through your options together.
For the full picture in your county, see our latest recaps for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
