Millennial home co-buying trend is skyrocketing 771% in 7 years – How it works

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Millennials lag behind older generations when it comes to homeownership. By age 30, 42% of Millennials own a home, compared to 48% of Gen Xers and 51% of Baby Boomers, according to Apartment List’s 2021 Millennial Homeownership Report. However, millennials are taking a different path to homeownership than their predecessors – by pooling their finances with roommates, friends, or partners.

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Data from real estate analysis firm Attom Data Solution shows that the number of co-buyers with different last names increased by 771% between 2014 and 2021, reports the Wall Street Journal. The pandemic has only accelerated this trend.

Between April and June 2020, 11% of buyers of all ages bought as an unmarried couple and 3% as “others” or roommates, according to the National Association of Realtors and as reported by the WSJ. These figures increased by 9% and 2%, respectively, compared to the previous year.

Many millennials put off marriage and have children; however, not all want to live alone.

“A lot of them want to live in a community setting, but they have enough money and they are looking around for house prices rising, and they want to gain a foothold in this appreciating market,” Andy Sirkin , a real estate agent specializing in condominiums, explains to the WSJ.

When it comes to ownership agreements, a condominium is more popular among unmarried partners or family members, allowing owners to pass their property rights to their co-owners upon death, reports the WSJ. Friends and roommates usually choose a tenancy agreement so that the property rights pass to the heirs.

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Coaches should also think about how to divide equity payments and mortgage payments. Experts also advise buyers to consult a real estate attorney to help them draft a condominium agreement, the WSJ noted, regarding personal fallout, job loss and everything in between.

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About the Author

Joséphine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based in Ohio where she attended Ohio State University and lives with her two toddlers and her fiance. His work has been published in print and online publications such as Fox Business and Scotsman Guide.

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