Creative Solutions for Homebuyers

Feeling overwhelmed by high home prices, interest rates, or that nagging sense that we’re “just not ready” to buy a home yet?

You’re not alone.

According to the 2025 NextGen Homebuyer Report, nearly 60% of Gen Z and Millennial buyers believe homeownership is attainable—but only 19% think now is a good time to buy.

So what are buyers doing instead?

They’re getting creative.

Here are four of the most popular alternative buying strategies young buyers are using to make homeownership happen in 2025—and how to know if one might be right for us.

1. Buying a Fixer-Upper

Used by: 42% of buyers surveyed
Good for: Handy buyers who want more space for less money
Not great for: Those who need move-in-ready or have limited renovation budgets

Buying a home that needs some love can be one of the smartest ways to get into a neighborhood we otherwise couldn’t afford. In many markets, fixer-uppers sell for 10–30% below comparable move-in-ready homes.

Pros:

• Lower upfront cost

• Opportunity to build equity fast

• Potential for customization

Cons:

• Renovation costs can add up quickly

• May require permits, inspections, and time

• Harder to finance with certain loan types

If buying a fixer-upper sounds appealing, it’s worth talking to our agent about renovation loan options like the FHA 203(k), which rolls improvement costs into our mortgage.

2. Co-Buying With Friends or Family

Considered by: 21% overall, but 32% of Gen Z
Good for: Buyers with trusted partners who want to pool resources
Not great for: Those with unclear agreements or mismatched financial goals

More and more buyers—especially Gen Z—are teaming up with siblings, friends, or partners to make homeownership possible. If done right, it can cut our expenses in half and double our buying power.

Pros:

• Shared down payment and monthly costs

• Larger budget for a better home or location

• Built-in support system

Cons:

• Requires clear legal agreements

• Disagreements can affect finances and relationships

• Resale or exit strategy needs to be defined upfront

If we’re thinking about co-buying, a co-ownership agreement is a must. A real estate attorney can help clarify responsibilities, equity splits, and what happens if someone wants out.

3. House Hacking (aka Renting Out Part of the Home)

Used by: Nearly 1 in 5 buyers (18.6%)
Good for: Buyers open to becoming landlords or sharing space
Not great for: Those who value privacy or want a single-use home

House hacking means buying a home with rental income potential—like a duplex, ADU, or basement apartment we can rent out short- or long-term. The goal is to offset part (or all) of our monthly mortgage.

Pros:

• Generates passive income

• Helps cover monthly costs

• Turns our home into an investment

Cons:

• Zoning and local laws may limit rentals

• May involve sharing space or managing tenants

• Requires extra insurance and planning

Before banking on rental income, be sure to check city and county regulations. Some areas require permits or restrict short-term rentals.

4. Relocating to a More Affordable Area

Considered by: 47% of buyers surveyed
Good for: Remote workers, flexible buyers, or those priced out of current markets
Not great for: Buyers tied to a specific job, school, or community

Remote work has opened the door for many of us to explore new places—and stretch our homebuying dollars further. Nearly half of young buyers are considering relocating to more affordable areas.

Pros:

• More square footage for the same budget

• Lower taxes and cost of living

• Greater potential for long-term equity

Cons:

• May require job changes or longer commutes

• Slower appreciation or fewer amenities in some areas

• Harder to tour homes in person

An experienced agent can point us to hidden-gem neighborhoods just outside the “hot zones” with better value and strong upside.

Final Thoughts: Be Creative—but Be Informed

In 2025, there’s no one-size-fits-all path to homeownership. The good news? We’ve got options.

Whether we’re considering teaming up with a friend, taking on a fixer, or making a move out of state, it’s all about finding the strategy that fits our life—and our budget.

Let’s talk through what’s possible and make a plan that gets us closer to the keys.