I n recent years, with Millennials facing a historically bad housing market , the number of Americans buying homes together with people other than their spouse has hit record highs. There are plenty of success stories — the group of friends who erected a 24-person, village-y compound in Oakland, California and the realtor who bought nine properties with friends and was worth $1 million before she was 30 in Austin, Texas — but going in on a shared home with friends has problems all its own. Co-buyers say they’ve faced financial disagreements, personal stress and huge debt loads as they try to exit these unique housing arrangements.
Some of the problems are their own doing, caused by poor planning or fraying tempers, while others come down to a housing system that hasn’t quite caught up with the idea of communal ownership. Celeste King, 35, spent $100,000 in 2021 for a share in a house near Austin with two friends. Two years later, she wanted out, frustrated with the time it took to renovate and the stress over vacation renters who broke house rules.
However, leaving the property behind would mean missing out on the home’s 50 percent appreciation. Making matters worse, her friends didn’t have the money to immediately buy out her share. Faced with this dilemma, they chose to help King exit by paying monthly $2,000 installments for the foreseeable future.
Not exactly the blissful bargain touted by share-house backers on TikTok. “That’s the big con to doing busines.