Communal homebuying rises in Idaho amid soaring prices

Key Story Highlights

• Idaho’s median home price has surged to $500K, outpacing income growth.
• Communal homebuying is helping residents afford homes by pooling resources.
• Millennials and Gen Z are leading this trend, co-purchasing with friends or family.
• Builders are adapting with multi-unit designs and financing options for shared ownership.

As the median home price in Idaho reaches half a million dollars, outpacing the median household income, many residents find themselves priced out of the traditional housing market. In response, a growing number of people are turning to communal homebuying as a viable solution.

This trend, which involves pooling resources to purchase homes together, is reshaping the real estate landscape in the state.

“With how the market is now and how much more expensive things are, obviously things have increased in price, but not necessarily in pay for people,” said Alyssa Larson, a 24-year-old Idaho resident who shares a home with her husband, her childhood friend Jakob Lampton and Jakob’s girlfriend. “Even with my career, I still am not necessarily making enough money to be able to have a home with just me and my husband.”

The concept of communal homebuying is not entirely new, but it has gained significant traction in recent years. Friends, extended family members and even unrelated individuals come together to buy homes, sharing the financial burden and the responsibilities of homeownership. This approach, they say, allows them to afford properties that would otherwise be out of reach.

Lampton, 23, points to the dramatic market shifts that have made traditional homebuying increasingly difficult for young adults.

“As COVID hit, and then as of ’21, house prices just skyrocketed, and we didn’t see any increase in our pay,” he said. “The way credit works, and the way that getting financing works, interest rates are so high. Everything’s so high and you can’t apply for a normal home if you are just a couple anymore.”

Lampton and Larson purchased a manufactured home previously. They quickly outgrew the manufactured home and decided to upgrade to a house in Boise. After working with realtors, they decided their best financial decision was for all four to purchase the house as a group.

“Even with the jobs that we have, we can’t necessarily afford to buy a house because it’s just too expensive,” Larson said. “I have my career, and I still am not necessarily making enough money to be able to have a home with just me and my husband.

According to the National Association of Realtors 2024 Home Buyers and Sellers Generational Trends Report, younger generations, particularly Millennials, are leading this trend. The report shows that 19% of younger Millennials and 20% of older Millennials are purchasing homes as unmarried couples, a significant increase from previous years.

Fueled by social media and a new acceptance of non-traditional living arrangements, this option has become a pragmatic approach to overcoming financial barriers.

“It looks like parents are investing more in generational housing and helping to create equity for their kids by purchasing a home with them to in order to have them eventually take it over and refinance under just their own names when they’re able to qualify on their own,” said Jodi Harada, realtor with The Agency Boise.”

According to Insider, real estate analytics firm ATTOM Data Solutions reported that co-home buying among Americans with different last names increased by 771% from 2014-2021. Redfin also found that 15% of prospective buyers plan to split their mortgage with a roommate that is not a spouse or partner.

The benefits of non-romantic co-ownership, a trend that is increasingly gaining traction among Americans, is supported by a JW Surety Bonds survey, showing that nearly 15% of Americans have co-purchased a home with non-romantic partners, with the younger Gen-Z set being the most willing.
Though friends and family members are opting to purchase homes together, there are still legal and financial challenges that must be overcome. (PHOTO: RUSS VAN WAGENEN)

Gen Z leads the trend with 70% of those surveyed more open to co-buying with a friend; however, the trend touches all age groups. Of those surveyed, 67% said sharing costs was the top advantage of co-ownership while 56% believe co-buying could mean they could afford a better home.

“We’ve seen younger, like those whole group of friends, buying homes together, but also we’ve seen where a mom and a dad may be buying a house with their children,” said Dani Gonzales, realtor with The Agency Boise. “They might be looking for their forever home, but allowing their child also to live with them to gain that equity as well.”

In Idaho, the rise of communal homebuying is even more pronounced. The state’s booming real estate market, driven by an influx of new residents and limited housing supply, has pushed home prices to unprecedented levels. The median home price in Idaho has surged to $500,000, far exceeding the median household income of $60,000, making it increasingly difficult for individuals and single-income households to enter the housing market.

Communal homebuying offers several advantages beyond financial feasibility. For the group household, the arrangement provides both practical and social benefits.

“We split the mortgage four ways, so we can all live how we want to live, and not be struggling with bills all the time,” Lampton said. The group has developed a system where couples take responsibility for different utilities, with one pair handling internet and power while the other manages sewer, water and trash bills.

However, communal homebuying also presents challenges. Legal and financial complexities can arise when multiple parties are involved in a property purchase.

Larson emphasized the importance of trust in these arrangements.

“I think a lot of people go in with their friends, and then relationships get ruined because they can’t trust somebody,” she said. “You definitely need to go in with someone that you can trust.”

The trend of communal homebuying is not limited to Idaho. Across the United States, rising home prices and economic uncertainty are prompting more people to explore alternative housing solutions. In states with similar housing market dynamics, such as California and Colorado, communal homebuying is becoming an increasingly popular option.

As this trend continues to grow, it is likely to have a lasting impact on the real estate market. Developers and real estate agents are adapting their strategies to accommodate the unique needs of communal buyers. Some are designing homes with flexible living spaces, offering financing options tailored to multiple buyers, and providing resources for legal and financial planning.

“As costs have increased, it’s forced buyers and builders to get more creative and try to create options that can appeal to multiple types of buyers or multigenerational living situations,” said Russ Van Wagenen, president of IronHaven Homes in Eagle. “It’s important to note that outside of the U.S., multigenerational living arrangements in one house are very common. Many immigrants have brought this approach to the states, but we have been slow to adjust the housing we build to accommodate this setup.”

Van Wagenen points to Langara Park, a 12-unit row home project that features Accessory Dwelling Units (ADU) above the garage with their own separate entrances from the main residence.

“This was my first experience with ADUs and the response has been tremendous,” he said. “Our development in Garden City features multiple unit types and can appeal to a variety of buyer groups. I could also see a buyer purchasing and then renting a room to a friend and sharing the space or buying a unit together with a friend.”

For homebuilders like Van Wagenen, this trend is here to stay, but the future could be tricky as well.

“It’s a big commitment to make a home purchase with another partner since you collectively take on the financial responsibility of the investment,” he said. “If one decides not to pay their share of the mortgage, it puts pressure on the other to make up the difference to keep the property from falling into default. I think this can work if both buyers are committed and serious about the purchase. If one isn’t, it could lead to problems down the road and potentially even affect friendships or relationships.”

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