The Average First-Time Buyer Is 40. Gen Z Has a Better Idea.

The median first-time homebuyer in the U.S. is now 40 years old. That figure comes from NAR’s 2025 Profile of Home Buyers and Sellers, which also found that first-time buyers fell to a record-low 21% of purchases.

For younger buyers, that raises a practical question: is there a way to get into ownership sooner without waiting until your savings catch up on one income? Buying a house together is one answer some Gen Z buyers are exploring, by pooling resources with a partner, sibling, friend, or parent. It can shift the math in your favor. It also shifts the responsibilities, and those deserve the same attention as the numbers.

This guide covers what the data shows, why buying a house together can help younger buyers, and what to decide before anyone’s name goes on a loan.

Quick answer: Can Gen Z buyers buy a house together to get into the market sooner?
Yes. Two or more buyers can combine savings for a larger down payment and apply with combined income, which can increase what they qualify for. Each borrower’s credit and debts still count, and co-borrowers are typically each responsible for the full mortgage payment. A written co-ownership agreement and a clear exit plan matter as much as the purchase price.

The First-Time Buyer Is Getting Older

The jump to 40 happened fast. NAR’s report shows the median first-time buyer age rose from 38 the year before. Back in the 1980s, the typical first-time buyer was in their late 20s, and before 2008, first-time buyers made up roughly 40% of home sales.

Saving up has also gotten harder. First-time buyers put down a median of 10% in 2025, the highest level for that group since 1989. NAR points to affordability challenges as the reason newcomers are staying on the sidelines while financially stronger buyers dominate.

A quick note on what this data does and does not tell you. It shows that people who bought their first home in that survey period were older than ever. It does not show that everyone is choosing to wait, and a median hides a wide range. Plenty of people still buy in their twenties.

The useful question is personal: what is your timeline if nothing about your plan changes?

Hypothetical example: Say you want a $350,000 home and plan to put 10% down. That is $35,000. Saving $500 a month gets you there in about six years. This simplified example assumes no interest or investment returns on your savings, no closing costs, and no change in home prices. Even with those simplifications, it shows why the timeline is the number many younger buyers are reacting to.

Gen Z Is Looking at the Math Differently

Gen Z is making progress, slowly. Redfin found that 27.1% of Gen Zers owned their home in 2025, up from 26.1% the year before. For comparison, millennials reached 55.4%, Gen X sat at 72.7%, and baby boomers were at 79.9%.

Those generational comparisons need context. They compare people at very different ages, and Redfin only counts households headed by each generation, so people living with parents or family are excluded, and only adult Gen Zers ages 19 to 28 were included. A fairer comparison looks at the same age. Just over 38% of 28-year-olds owned their home, higher than the 36.8% rate millennials had at 28. Gen Z is not falling off a cliff. It is moving into ownership under expensive conditions.

The same Redfin data shows how quickly ownership climbs through the late twenties: about 27.2% of 25-year-olds owned their home, compared with 31.6% of 27-year-olds and just over 38% of 28-year-olds. Those few years are when many people are building savings and credit history for the first time. For a buyer at that stage, combining resources with someone else can be one way to reach a down payment while their individual savings are still small.

How younger buyers plan to get there is where the data gets interesting. The 2025 NextGen Homebuyer Report from National MI and FirstHome IQ surveyed 1,000 people ages 18 to 44. Across that group, 21% were considering co-buying with friends or family, 42% were looking at fixer-uppers, and 19% were considering house hacking. Gen Z respondents, defined as ages 18 to 24, were much more likely to consider co-buying, at 32% compared with 18% of millennials.

The same report found that 43% of Gen Z respondents felt confident in their financial knowledge, compared with 53% of millennials. Put those two findings side by side and you get a group that is more open to buying together but less sure about the financial details. That combination makes planning, professional advice, and clear written terms especially important for younger co-buyers.

Two things worth keeping straight here. “Considering” measures interest, not completed purchases. And 32% means roughly two-thirds of the Gen Z respondents were not considering it. The documented fact is that a sizable share of younger buyers are open to shared ownership. The interpretation is that affordability pressure is pushing more of them to look at it seriously.

Common mistake: treating a trend as a plan. Knowing other people your age are interested in buying a house together tells you nothing about whether your finances, your co-buyer, or your market make it a good move for you.

Why Buying a House Together Changes the Equation for Gen Z

Buying with someone gives you three levers that are hard to pull on one income.

The first is savings. Combining what each person has saved can bring a down payment target closer than either buyer could reach separately, as the example below shows.

The second is qualifying income. Lenders generally evaluate co-borrowers’ incomes together, which can raise the loan amount you qualify for. They also look at each person’s credit and debts, so one borrower’s car loan or lower credit score can affect the terms for everyone on the application. How that works depends on the lender and loan program, so ask early.

The third is ongoing costs. Taxes, insurance, utilities, and repairs can be shared among more people, depending on how you structure your agreement.

Hypothetical example: Maya and her brother Jordan have each saved $18,000. Separately, each has 5% for a $360,000 home, or 10% on a much cheaper one. Together, they have $36,000, which covers 10% on that $360,000 home. They still need to plan for closing costs and a cash reserve, so in practice they might target a slightly lower price or keep saving a few more months. In this scenario, their combined position moves the timeline forward in a way neither could manage alone.

A decision you need to make together: do you want to use your combined buying power to buy more house, or to buy the same house with a lower monthly cost per person? Both are valid. Choosing the bigger house uses up the cushion that makes shared ownership safer.

What Splitting the Mortgage Leaves Out

Co-buying gets described as “splitting the cost,” and that description skips most of the work. Owning a home with someone means making shared decisions for years. Here is what needs an answer before you close.

Who contributes what. Down payment, closing costs, and furniture rarely split evenly. Write down every dollar each person puts in.

Ownership percentages. If one person puts in 70% of the down payment, a 50/50 title may not reflect what each person contributed. That does not mean unequal contributions automatically require unequal ownership. Some co-buyers choose equal ownership on purpose and use their agreement to spell out how extra contributions get credited or repaid when the home sells. What matters is that the choice is deliberate and written down. Many co-buyers who want unequal shares use tenancy in common. Joint tenancy typically means equal shares with a right of survivorship. Rules vary by state, so confirm with a real estate attorney where you are buying.

Monthly expenses. Decide whether the mortgage, taxes, insurance, and HOA fees split equally or in proportion to ownership. Then decide what happens if someone pays late.

Repairs and reserves. A water heater does not care whose turn it is. Agree on a shared repair fund, how much goes in each month, and what dollar amount requires both owners to approve a project.

Who lives there. If one co-owner lives in the home and the other does not, discuss whether the occupant pays rent to the other owner or covers a larger share of costs.

What happens when life changes. New jobs, new partners, babies, and cross-country moves are all common in your twenties and thirties. For younger co-buyers, these changes are likely to come up during the years you own the home together, so plan for them from the start. Your agreement should cover buyout rights, how the home gets valued, how long someone has to come up with buyout money, and what happens if nobody can buy the other out.

Common mistake: assuming the relationship covers what the paperwork does not. Co-buyers who aren’t married may need to establish their own rules for ownership, contributions, and what happens if one person wants out. A written co-ownership agreement fills that gap. Pairgap’s Real Estate Prenup walks co-buyers through contributions, living arrangements, and exit terms so the conversation turns into a document you can review with an attorney.

Also keep in mind that lenders generally hold every co-borrower responsible for the full loan. If your co-buyer stops paying, the lender can look to you for the entire payment, and late payments can affect both of your credit histories.

Questions to Answer Before You Buy Together

Buying a house together requires more than combining finances. Sit down with your co-buyer and work through these questions before you start touring homes:

• How much is each of us putting toward the down payment and closing costs?
• What ownership percentage will each of us hold, and how will that be recorded on title?
• How are monthly costs split, and what happens if one of us cannot pay for a month or two?
• How much goes into a shared repair and emergency reserve each month?
• Who lives in the home, and does anyone pay rent to the other owners?
• What is our expected timeline: 3 years, 5 years, 10 or more?
• If one of us wants out, how do we value the home and fund a buyout?
• What happens if one of us gets married, moves in a partner, or relocates for work?
• Are we comfortable sharing credit reports, debts, and income details with each other?
• Who is our real estate attorney, and when will we put the agreement in writing?

If any of these questions feel awkward to ask, that is useful information. Asking them now costs far less than sorting them out during a dispute.

Run the Numbers Together First

Once you have answered those questions, put real figures behind them. The Co-Buyer Calculator lets you enter each buyer’s income, credit, and savings to see your combined buying power.

A practical way to use it:

1. Run each person’s numbers separately to see what buying on one income looks like.
2. Run the combined scenario to see how much the range changes.
3. Pick a target price below your combined maximum so you keep room for reserves.
4. Test a “what if” scenario where one person’s income drops, and see whether the other could cover the payment for a few months.

The calculator gives you a starting range for conversations with each other and with a lender. It does not replace a preapproval or legal advice, and it works best after you have already agreed on the basics above.

Buy Sooner, With a Plan

A first-time buyer age of 40 describes the market as a whole. Your timeline depends on your income, your savings, your market, and the person or people you choose to buy with. For many younger buyers, buying a house together is a deliberate way to get into ownership years earlier, as long as everyone treats it like the long-term financial partnership it is.

Start with the numbers, then get the agreements in writing. If you are ready to see what you and a co-buyer could afford together, try the Co-Buyer Calculator.

Sources: NAR 2025 Profile of Home Buyers and Sellers · Redfin: Homeownership Rate by Generation, 2025 · National MI and FirstHome IQ: 2025 NextGen Homebuyer Report