10 Cities To Consider the Popular Trend of ‘Co-Buying’ a Home
Millennial and Gen Z homebuyers have been taking part in the trend of “co-buying” a home as a means to split the costs amidst the current housing shortage. According to Axios, non-romantic co-ownership housing rates grew an average of 21.1% in 2023 from the previous year. Compound the housing market with financial burdens like student loans, and it’s easy to see why more people are motivated to co-own — in fact, the housing market is the least affordable it’s been in 40 years. In October of 2023, the mortgage rate peaked at 8% — the highest it had been in two decades.
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These factors have led to the younger generations engaging in “carpooling for homes,” a life hack from the same mindset that led to the rise of side hustles. If you’re a like-minded homebuyer, you may want to consider co-buying in one of these 10 affordable cities, as you’ll set yourself up for greater savings by splitting the cost with a co-owner.
Forbes recently ranked the 10 most affordable cities for co-buying from most to least affordable.
1. Detroit, Michigan
Median Salary: $36,000
In recent years, Detroit’s overall quality of life improved. By choosing to live here, you’ll also benefit from job opportunities beyond General Motors and the like — large tech companies are also present in the Motor City, including Microsoft and Google. Plus, a recent partnership between Apple and Michigan State University will see the former open its first developer academy in North America here.
2. Cleveland, Ohio
Median Salary: $47,268
The Cleveland Innovation District, a partnership that includes the Cleveland Clinic, University hospitals and the Department of Development, forecasts 20,000 new jobs in the next ten years. Combine that with the huge growth in technology workers in this metro area, and you end up with a relatively affordable place to live that has plenty of promise in the job market to support such residence.
3. Toledo, Ohio
Median Salary: $37,220
Similar to Detroit, Toledo has been improving in recent years in terms of economic growth. This city has employment opportunities in both construction and the financial sector.
4. Memphis, Tennessee
Median Salary: $38,949
Memphis is another affordable city with growth in the tech industry due to substantial capital investments in tech startups. Not only that, FedEx is a large employer in the city in addition to the state government. You’ll also benefit from a low average state income tax of 1%.
5. Baltimore, Maryland
Median Salary: $50,108
By making use of the Penn Line, employees are able to commute to jobs in the District of Columbia while avoiding the high home prices. Baltimore also features renowned employment opportunities at employers like Johns Hopkins University and Northrop Grumman.
6. Rochester, New York
Median Salary: $41,646
Rochester benefits from greater affordability and is thus a destination for those looking at cities far from Manhattan. Those in academia or medical sciences have access to the University of Rochester and UR Medicine, which have a combined 32,000 employees.
7. Milwaukee, Wisconsin
Median Salary: $41,166
Milwaukee has recently been pushing for more affordable housing in closer proximity to where people work, particularly in the suburbs. While it has a way to go, it has tens of thousands of employees within the health sector, split between Aurora Health Care, Ascension Wisconsin and Froedtert Health.
8. Montgomery, Alabama
Median Salary: $39,505
Montgomery has the lowest median annual real estate taxes of the 10 cities listsed here. It is also a hotspot for the aerospace industry. Boeing, Northrop Grumman, Leidos, Raytheon and Lockheed Martin all have a presence in the city.
9. Buffalo, New York
Median Salary: $41,036
Buffalo is another city in New York that stands in contrast to New York City for distance and its less expensive housing options, with lower median listing prices and annual real estate taxes.
10. Kansas City, Kansas
Median Salary: $37,861
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Rounding out the 10 places is Kansas City, which shares much of the greater affordability of the Midwest. It’s also a great opportunity for those in healthcare, as the University of Kansas Hospital and Medical Center have thousands of employees. There are also employment opportunities in manufacturing and transportation.
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