Think you can’t afford to buy in this market? What if you could split the cost? Co-buying a home with friends isn’t just a wild idea—it’s a powerful financial strategy gaining serious traction.

The problem is that the script for homeownership has been completely rewritten. The normal used to be saving up and buying a starter home on your own or with a spouse. Then came the market explosion—a period of soaring prices that pushed individual ownership out of reach for many. Now, in the new normal of February 2026, you face a marketplace pulse that demands creative solutions. For many, that solution is pooling resources. In fact, 15% of Americans have already co-bought a home with someone other than a romantic partner [5].

Co-buying with friends isn’t a compromise; it’s a strategic hack to build wealth in a market that has left many on the sidelines. #CoBuying #RealEstateStrategy

The Problem: The Affordability Wall

Let’s talk about two friends—we’ll call them Alex and Ben. They’re both successful professionals who love San Diego, but they’re stuck in the rent cycle. They watch the San Diego home prices climb, feeling like they’re falling further behind. The down payment alone seems like a mountain, and the monthly mortgage for a home they’d actually want to live in feels impossible on a single income.

Their frustration is a shared story. After another conversation lamenting a rent increase, a joke is made: “We should just buy a place together.” The laughter dies down, and they look at each other. What if they could? This is the turning-point moment for countless aspiring homeowners—the shift from an impossible dream to a mathematical possibility.

The Solution: A Data-Driven Co-Buying Playbook

Buying a home with a friend transforms a solo financial burden into a team sport. But like any high-stakes game, you need a clear playbook to win. It’s about maximizing the rewards while strategically mitigating the very real risks.

Unpack the rewards of teaming up

Before diving into the risks, understand why this is such a compelling strategy. It’s more than just a way to stop paying your landlord’s mortgage.

▶ Massively Increased Purchasing Power: Your combined incomes and savings unlock access to better properties in more desirable neighborhoods. Suddenly, that duplex with a yard or that condo near the beach isn’t out of reach.
▶ Build Wealth Instead of Burning Cash: Every mortgage payment builds equity. It’s a forced savings account that grows your net worth. This is the fundamental advantage of renting vs. buying, and co-buying gets you in the game faster.
▶ Shared Financial Load: The benefits extend far beyond the down payment.
■ Mortgage Payments: Your largest monthly expense is cut in half (or thirds, or fourths).
■ Property Taxes & Insurance: These significant annual costs become far more manageable.
■ Maintenance & Repairs: When the water heater inevitably gives out, you’re splitting the cost of that emergency call.

Navigate the risks before you leap

Success in co-buying hinges on anticipating problems before they happen. Handshakes don’t hold up in real estate. You need to address the awkward questions head-on and formalize your partnership.

➜ Get Radically Honest About Finances
This is non-negotiable. You must be comfortable sharing everything: income, debt, savings, and credit scores. A lender will see it all anyway. If one person has a low credit score or high debt-to-income ratio, it can impact your ability to qualify for a loan or the interest rate you receive. There should be zero surprises.

➜ Draft an Ironclad Co-Ownership Agreement
This legal document is your single most important tool. It’s the “pre-nup” for your property partnership. At The Cassity Team, we always connect our co-buying clients with a qualified real estate attorney to draft this. It should explicitly define:
■ Ownership Structure: You’ll typically choose between “joint tenants” or “tenants in common.” Joint tenancy includes the “right of survivorship” (if one owner passes, their share automatically goes to the other owner), while tenants in common allows each person to will their share to whomever they choose [7].
■ Financial Contributions: Detail who paid what for the down payment and closing costs, and how ongoing expenses (mortgage, utilities, repairs) will be split.
■ The Exit Strategy: This is crucial. What happens if Alex gets a job in Denver or Ben decides to get married? Your agreement must outline the process for a buyout, how the buyout price will be determined (e.g., based on two independent appraisals), and the timeline for a forced sale if a buyout isn’t possible.

➜ Define the House Rules
Don’t let a disagreement over dirty dishes or a new partner who stays over five nights a week torpedo a six-figure investment and a friendship. Create a separate, less formal document outlining day-to-day living expectations:
■ Guest policies
■ Cleaning responsibilities
■ Shared spaces vs. private spaces
■ Noise levels and quiet hours

It might feel like you’re creating bylaws for a college dorm, but this simple step prevents major conflicts. We once had clients who almost derailed their purchase over a dispute about whether a cat was a “pet” or “family.” Trust us, write it down.

Your Go-To-Market Playbook

The steps to buying with a friend are similar to a solo purchase, but the stakes are higher. You don’t just need an agent; you need a strategist.

1. Assemble Your Professional Team: Your first move is to partner with a real estate team that has direct experience with complex transactions. The Cassity Team has a proven process for guiding co-buyers from idea to closing day. We also connect you with lenders who understand joint ownership and attorneys who specialize in co-buying agreements.

2. Structure Your Legal & Financial Plan: With your team in place, you’ll get pre-approved for a loan and have your attorney draft the co-ownership agreement. This ensures your foundation is solid before you even start looking at homes.

3. Execute a Targeted Property Search: Are you looking for a duplex where you each have your own space? A large house with dual master suites? Or a property with an Accessory Dwelling Unit (ADU)? We help you refine your criteria and find properties that structurally and legally fit your co-buying goals. We can help you buy a home that works for your unique partnership.

4. Negotiate and Close with Confidence: With multiple buyers, a clean, strong offer is critical. We manage the complexities of the transaction to ensure a smooth path to the closing table, protecting your interests and your friendship along the way.

Co-buying a home is a brilliant strategy for building wealth and achieving ownership in a challenging market. But it’s a business transaction first and foremost. Treat it with the seriousness it deserves.

Stop wondering if you can afford to buy. The answer might be “yes”—with the right partner and the right plan.

Schedule your complimentary co-buying strategy consultation with The Cassity Team today, and let’s build your path to ownership.