Is co-ownership the next big thing in the US mortgage market?
As affordability climbs further out of reach for many homebuyers, co-ownership – purchasing a home with a friend or other family member – has been a particularly noteworthy trend in the US housing market.
A recent JW Surety Bonds survey said 15% of respondents had taken steps to buy a home with someone other than a romantic partner – and Pacaso also noted a significant jump in the number of Americans teaming up with another person to purchase a property.
It’s a trend that could also be set to gather pace in Florida, according to Radermacher, as home prices continue to rise.
Mortgage applications for home purchases in the US rose for the first time in five weeks as mortgage rates eased closer to 7%, according to Mortgage Bankers Association’s index of mortgage applications.https://t.co/9olF6tApZ3
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“I think the new idea of affordability is different,” she said. “I think some of us used to laugh when Golden Girls came out. It was four elderly women who were friends, and you kind of laugh because you’re like, ‘Why would four people live together that were semi-strangers becoming friends?’ I think that could weirdly be the new norm.”
On that note, to younger clients, Radermacher’s advice often centers around the idea of co-ownership: “If you’re that close and you’re going to be in the area, collab together and buy a house,” she said. “You’ll get way more bang for your buck. And I think that’s going to be what we’ll start seeing a lot more of.”
