Jesse Jones: Millennials finding creative ways to become homeowners

We know it’s expensive to live around here, even with a six-figure salary, housing costs take more than half your income. 

Zillow says in the Seattle Metro the average home price is nearly $900k and the median household income is $115k.

That may be why millennials are redefining how to become homeowners.

Bankrate Analyst Alex Gailey says the trend of co-buying with a friend or sibling is the newest way for younger generations to break into the costly real estate market.

“Generally, you see that millennials are just buying homes differently compared to their older counterparts. And they’re really redefining traditional homeownership norms,” Gailey says.

According to Bankrate, buying a home with a domestic partner or spouse continues to be the most common way to get into homeownership.

However, a higher percentage of millennials have bought a home alone, with a friend, or with a relative other than a domestic partner or spouse.

The trend seems to correlate with decreasing marriage rates. 61% of Baby Boomers were married between the ages of 23 and 38, compared to only 44% of millennials.

“70% of baby boomers have purchased a home with a domestic partner or spouse. That figure drops to 56% for gen-Xers and 47% for millennials. On the flip side, 42% of millennials have purchased a home alone, 34% of gen-Xers, and only 22% of baby boomers,” Gailey says.

Now, if you want to head down that path with someone who is not family, your best bet is to consult a lawyer.

“There’s always going to be uncertainty with buying with another person. I think having those conversations upfront about how you’re going to split ownership and the costs. Also, what happens if one person wants to sell? I think having those conversations upfront is really critical,” Gailey says.

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