How Today’s Buyers Are Getting Creative to Afford a Home

Feeling overwhelmed by high home prices, rising interest rates, or just not sure you’re “ready” to own a home yet?

You’re not the only one.

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

So, what’s everyone doing instead?

They’re getting creative.

Here are four smart, outside-the-box strategies that young buyers are using to make homeownership a reality in 2025—plus how to know if one of them might be a fit for you.

1. Buying a Fixer-Upper

Used by: 42% of buyers surveyed
Great for: Handy buyers who want more space for less money
Not ideal for: Those who need move-in-ready homes or have tight reno budgets

Buying a home that needs some love can be a powerful way to get into a great neighborhood at a more affordable price. In many markets, fixer-uppers are priced 10–30% below their polished counterparts.

Pros:

  • Lower upfront cost

  • Faster equity growth

  • Opportunity to make the space your own

Cons:

  • Renovation costs can pile up

  • Permits and timelines can be tricky

  • Some loans don’t cover renovation work

If this route sounds like your style, ask your agent about renovation loan options like the FHA 203(k), which bundles remodeling costs into your mortgage.

2. Co-Buying with Friends or Family

Considered by: 21% overall, 32% of Gen Z
Great for: Buyers who have trusted partners to team up with
Not ideal for: Those without clear financial goals or legal agreements

Co-buying is becoming more common, especially among younger buyers teaming up with siblings, friends, or partners. Done right, it can cut costs in half and double your buying power.

Pros:

  • Shared down payment and monthly expenses

  • Bigger budget for better homes or locations

  • Built-in support system

Cons:

  • Requires solid legal agreements

  • Financial disagreements can strain relationships

  • You’ll need a clear exit plan

Thinking about co-buying? Sit down together, align your goals, and have an attorney draft a co-ownership agreement before you start house hunting.

3. House Hacking (a.k.a. Renting Out Part of Your Home)

Used by: 18.6% of buyers
Great for: Buyers open to rental income and landlord responsibilities
Not ideal for: Those who want total privacy or don’t want to share their space

House hacking means buying a property with built-in rental potential—like a duplex, ADU, or basement apartment. You can rent it out long-term or even list it on platforms like Airbnb, helping cover part (or all) of your mortgage.

Pros:

  • Generates passive income

  • Reduces your monthly housing costs

  • Turns your home into a wealth-building asset

Cons:

  • Local zoning or rental rules may apply

  • Managing tenants or guests requires time and energy

  • May need special insurance or permits

Before you dive in, check city regulations and chat with your lender about how rental income may factor into your financing.

4. Relocating to a More Affordable Area

Considered by: 47% of buyers
Great for: Remote workers and flexible buyers looking for value
Not ideal for: Those tied to one school district, job, or community

Remote work has opened the doors to more flexible living, and nearly half of young buyers are considering a move to more affordable areas to stretch their dollars.

Pros:

  • More space for your money

  • Lower taxes and cost of living

  • Potential to build equity faster

Cons:

  • May require a job change or longer commute

  • Local amenities and appreciation may vary

  • House hunting from afar can be challenging

Not sure where to look? Ask your agent about up-and-coming suburbs or smaller towns with big potential.

Final Thoughts: Be Creative—and Informed

The path to homeownership in 2025 isn’t one-size-fits-all—and that’s actually a good thing. With so many options on the table, you can find a route that matches your lifestyle, your goals, and your finances.

Whether you’re thinking of teaming up with a friend, tackling a fixer-upper, or relocating for more affordability, the key is doing your research, running the numbers, and finding a strategy that feels right for you.

And remember: you don’t have to figure it out alone. A great agent can help you explore all your options and support you every step of the way.

jennifer Sloan