Leslie Sherman and her husband never expected to own a home in San Jose, given its expensive market. With rising prices and interests, families are increasingly pursuing co-ownership models to overcome affordability challenges. In 2024, the share of first-time homebuyers hit a record low, prompting parents to become co-investors or co-signers. Analysis shows the percentage of young buyers with co-signers grew significantly, with a notable trend among Gen Z, indicating a reliance on family financial support to enter the housing market.
In 2024, just 24% of homebuyers were purchasing their first home, the lowest share on record since 1981, indicating significant affordability barriers.
Rising mortgage rates, persistent student debt, and high home prices are making it nearly impossible for younger generations to buy without financial support.
The proportion of young homebuyers relying on a co-signer of an older generation more than doubled from 1.6% in 1994 to 3.7% in 2022.
As much as 38% of Gen Z homebuyers receive assistance from their parents in making their first home purchase, highlighting the trend in family financial involvement.
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