Faced with rising home prices and high mortgage rates, more siblings are buying homes together to split costs and qualify for loans—especially among younger generations.
A Korean American resident Kim, recently purchased a home with her younger sister. Although the property is jointly owned, the financial burden was cut in half, and dual income made the mortgage approval process easier.
In another case, two Korean American sisters in Orange County purchased a home together but experienced conflict after one married and attempted to change the deed. The issue stemmed from relying on verbal agreements without a written contract.
These cases reflect a broader trend. According to the Bank of America Institute’s annual survey, the share of Gen Z homeowners who purchased a home with a sibling rose from 4% in 2023 to 12% in 2024, and is projected to hit 22% in 2025—a more than fivefold increase.
Experts cite surging rent, higher living expenses, and difficulty saving for down payments as primary drivers. Some analysts say co-buying is not just about cost savings, but a strategic move for long-term financial security.
Christine Shin, director of the Korean Real Estate Brokers Association of Southern California, said that buying a home alone has become nearly impossible due to elevated home prices. “Co-ownership makes it easier to handle upfront costs and monthly payments,” she explained. However, she warned that informal arrangements could lead to family disputes. “Shared ownership means shared responsibility, so you need a clear contract in place.”
There are two main types of joint ownership. One is Joint Tenancy with Right of Survivorship, where each party owns an equal share and, if one dies, the ownership automatically transfers to the survivor. The other is Tenancy in Common, where shares are divided based on each person’s financial contribution and can be sold or inherited independently.
Most sibling co-buyers choose Tenancy in Common, especially when ownership shares are unequal or when estate planning is a factor. In such cases, experts recommend a co-ownership agreement to avoid future disputes. This contract should cover maintenance costs, tax obligations, and how to handle a potential sale or exit.
For instance, if one sibling wants to leave the partnership, the other can buy them out by taking out a loan to assume full ownership. If one party insists on selling and the other refuses, the matter may be resolved through a partition action, a legal procedure that forces a sale or division of the property.
If one sibling wishes to live alone in the home, they must refinance the mortgage in their name, settle the other’s share, and complete the transfer with a quitclaim deed.
“Relying solely on verbal agreements just because you’re family is risky,” experts emphasize. “Treat co-ownership like a business deal. Set up legal safeguards to prevent emotional conflict.”
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
