11% Of All Home Sales Are To Unmarried Couples Who Are Choosing Monetary Stability Over Marriage And Using Real Estate To Do It

Couples are deciding that they’d rather put a down payment than a ring on it. With the American dream of homeownership remaining just that – a pipe dream – for many people caught in an affordability crisis, more couples have decided that financial stability comes before romance. That means a mortgage comes before a marriage. According to a Wall Street Journal analysis of Census Bureau data, the number of unmarried couples surveyed in 2023 who said they bought their home the previous year increased to 555,000, up 46% from a decade earlier when the number was 381,000.

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The Percentage of Unmarried Couples Buying Homes Has Risen Dramatically

In total, unmarried couples accounted for 11% of all U.S. home sales in 2023 – a percentage that has been climbing while marriage rates have declined. Unmarried couples' homeownership rates are now three times what they were in the 1980s, according to the National Association of Realtors. The prioritizing of homeownership is not surprising, given its role in financial stability. According to the Urban Institute:

• In 2022, the median wealth gap between homeowners and renters reached almost $390,000 and the average wealth gap reached over $1,370,000.

• Over the past 33 years, the median wealth gap between homeowners and renters has increased by 70%, while the average wealth gap increased by more than 250%.

• During this period, homeowners’ median and average wealth increased by almost $165,000 and $900,000, respectively, while for renters, the increases were $5,800 and $56,000, respectively. 

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House Prices Are A Runaway Train

House prices are a runaway train when it comes to appreciation. Over the past decade, rental prices have increased faster than incomes, reducing renters’ residual income after paying for housing, which is why unmarried couples have been keen to become homeowners at all costs – even foregoing traditional marriage plans. 

Homeowners Are Getting Older

Given the rapidly increasing home prices in the U.S., it’s understandable that the average age of homeownership has been trending upward. It is now 38, up from 31 in 2014, according to the Census Bureau and NAR. Many homeowners are getting creative to jump on the property ladder. Workarounds include:

• Living with family to save up cash for a down payment
• Buying a smaller, tiny or mobile home instead of a conventional starter home
• Using specialty loan programs and builder financing to cover closing costs
• Moving to a cheaper location and working remotely
• Buying with a friend or family member to help qualify for the mortgage

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Legal Protections

Buying a home is one of the most important financial decisions people make in their lives and complicating the issue with a relationship puts buyers' financial futures on thin ice should things go bad. That's why many experts advise unmarried couples to get a rock-solid legal agreement when buying a house together. A prenup-like cohabitation agreement that spells out who keeps the house and how to divide the financial obligations is often advised in lieu of a divorce agreement, which is quite straightforward in spelling out the division of assets when a married partner splits.

Like a home, the cost of a wedding has increased markedly in recent years. However, unlike a home, a wedding expense doesn't provide a return on the investment in terms of equity appreciation or offering a place to live. It also cannot be rented out for additional income. It is a prime reason why many couples have decided to put their money to work in buying a home rather than a blowout event that is over in a day.

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