Young Americans are now pooling their funds to afford homeownership — why 1 woman says buying with her best friend was the best choice she ever made

Heidi Turner and her best friend have shared a lot over the years, including the dream of home ownership.

They made it official 15 years ago, buying a home together — rather than waiting to save up for a down payment or marrying a life partner.

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Heidi says their shared home ownership has worked out well for a lot of the same reasons the best marriages work.

“We knew each other well and had conversations that many people avoid — even in marriages,” she told Business Insider. (1)

It’s important to start those conversations before taking the home ownership plunge with a friend as you explore the pros and cons.

The pros and cons of buying a home with a friend

In 2010, when Heidi and her friend purchased their home, the median house price was $222,900. Today, it’s nearly doubled to $410,800, according to the Federal Reserve Bank of St. Louis.

With prices rising faster than incomes, the dream of buying a home has become more out of reach, particularly for younger Americans. The National Association of Realtors reports the median age of a first-time homebuyer reached 38 in 2024 — the oldest on record. (2)

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That’s why more people are considering buying with a friend. But like any major decision, it comes with both advantages and drawbacks.

As Heidi put it: “We didn’t go into this situation blindly.”

Upsides of shared home ownership

Pooling income and savings means it’s easier to own a home earlier in life and start building home equity. Instead of paying rent, you’re both investing in a shared asset.

You can get more space for less, as joint buyers can often afford a larger property or better location than they could alone.

Challenges of shared home ownership

If one person loses a job or stops paying the mortgage, the other is still on the hook for the mortgage payments.

Just as with roommates, lifestyle differences can clash — from furniture choices to entertaining habits and personal preferences.

Life happens. Marriage, career moves, or financial changes can create friction if there’s no plan in place.

Protect yourself if you plan to buy a home with a friend

Buying property with a friend requires getting clear on a number of things — through discussions and in legal agreements — before and after the purchase.

Consider the following scenarios with your friend before taking the property plunge.

If one partner marries. Heidi and her friend agree they’ll sign prenuptial agreements if they marry to keep the house out of any marital assets, ensuring no spouse could force a sale. Future-proofing arrangements like this can prevent legal headaches later.

If one partner wants out. One of you may want to cash out or relocate. It’s smart to spell out whether the other owner has the right to buy out their share or how the property will be listed and sold.

If a partner dies. Heidi and her friend have agreed that if one of them passes away, the other will inherit the home directly, bypassing their estates. Without a legal plan like this, surviving partners can face disputes with family members.

If partners clash. Disagreements will happen. Heidi says she’s an extrovert who loves hosting dinner parties, while her friend prefers a quieter home. They solved this by planning social events while her friend travels, striking a balance that works for both.

Talking through these scenarios is one thing, but documenting them is what truly protects you.

To make sure you and your co-buyer are covered, take these steps:

1. Write a cohabitation or co-ownership agreement. This outlines how you and your co-owner will split costs, make decisions and proceed if one party wants out.

2. Clarify title ownership. Decide whether to hold the property as joint tenants (with rights of survivorship) or tenants in common (each can pass their share to someone else).

3. Prepare an exit strategy if one partner wants out. Put down in writing how you’ll handle a sale, buyout, or refinancing if needed.

4. Make sure you both consider the home in your estate planning. Ensure your wishes are legally enforceable. If you want the home to pass to your friend, consider a transfer-on-death deed or setting up joint tenancy with right of survivorship (3)

Heidi and her best friend show that there’s no single path to homeownership. With honest, frequent conversations and the right legal protections, buying with a friend can offer stability and opportunity that might otherwise feel out of reach.

“We may not have followed the traditional path,” Heidi said, “but it’s worked better for us than we could have imagined.” (4)

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Business Insider (1, 4); National Association of Realtors (2); LegalZoom (3)

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This article originally appeared on Moneywise.com under the title: Young Americans are now pooling their funds to afford homeownership — here’s how they’re making it work

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.