Beyond Romance: The Rise Of Unconventional Coinvestments In Real Estate

Envision a joint home acquisition that's not with a romantic partner but a coinvestment with a friend, colleague or family member.

This unconventional strategy is gaining momentum in today's real estate market. According to a survey of 1,400 Americans conducted by Risk Strategies, 13% have ventured beyond the norm and are purchasing homes with nonromantic partners. Another 48% would consider purchasing a home with a person other than a romantic partner.

"We might see the real estate industry evolve to accommodate this growing preference, offering more tailored coownership opportunities," the report states. "Further research could illuminate the long-term effects of this shift on community dynamics and financial wellness."

Single people are more interested in cobuying a home than married couples, and men and women are nearly equally likely to be interested in copurchasing a home than someone other than a romantic partner. But men are 37% more likely than women to be interested in cobuying a home with a friend.

Gen Z is the most interested in cobuying a home for a personal residence, while older generations view doing so as an investment opportunity. Gen Z also is more interested in purchasing a home with a friend than with a parent.

Overall, 29% of people who have copurchased a home with a nonromantic partner did so with a parent, 26% with a sibling and 26% with a friend. Nearly 1 in 4 respondents who copurchased a home with a nonromantic partner could not have afforded to buy the home otherwise.

Almost half of people who purchased a home with a nonromantic partner use it as their primary residence, 26% bought it as an investment and 17% are flipping it.

Perceived Benefits Of Cobuying A Home

• Sharing costs, 67%
• Affording a better home, 56%
• Investment opportunity, 54%
• Sharing responsibilities, 48%
• Building equity, 35%
• Tax benefits, 27%
• Strengthening relationships, 17%

But people also see drawbacks, with 79% of survey respondents worrying about interpersonal conflicts, 62% concerned about legal and financial complications and 52% worrying about the potential for financial loss. Other perceived drawbacks include difficulty selling or transferring ownership (49%), risk of default (38%), unequal investment (38%), inheritance issues (30%) and impact on credit (29%).

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