Parents helping their adult children purchase a home, either with cash or cosigning on a mortgage, isn’t anything new. But an emerging real-estate trend is home co-ownership and cohabitation of Gen Zs (born 1997-2012) and their gently aging parents.
In 2021, one in six homeowners born in the 1990s co-owned with their parents, according to StatsCan. And in 2023, the number of people over 25 living with their parents jumped by 45 per cent compared to 2018, according to Environics Analytics.
There are plenty of pros to this type of multi-generation, home-ownership arrangement, but some serious cons that should be considered as well. So, let’s dive in! (Before you dive in yourself.)
Related: Is Multigenerational Living the New Canadian Reality?
What Is Home Co-Ownership?
Home co-ownership and cohabitation across generations can come in all sorts of shapes and sizes. In many cultures, it has been the norm for generations. All parties could have equal share in the property, or it could be divided depending on their individual contributions. Parents could pay the down payment while their Gen Z kids cover the mortgage payments, or vice versa.
They could decide to buy a new house and cohabitate, renovate the family home, add a laneway house or make separate suites. Parents may downsize and use the sale of their own home to buy property that would suit all parties. Maybe the arrangement isn’t financially tied but rather a reciprocation of care, be it property maintenance, childcare or elder care.
Honestly, the creative combinations for home co-ownership are limitless (while the legalities and financials aren’t). This growing trend isn’t propelled solely by tradition, but by a widespread need for financial stability, shared care and community.
Related: What to Ask Before Buying an Investment Property With Friends
Why Consider Home Co-Ownership?
Skyrocketing housing prices and rental rates, stagnant wages and the cost-of-living crisis have made entering the real estate market unattainable for many Gen Zs. One of the only routes in — for those with the privilege to do so — is relying on the property-rich-but-income-poor older generation to do it with them.
Now, we’re not talking about the level of wealth where parents could simply buy the “kids” a property outright. This trend is about combining assets (e.g. a steady income, investments or a long-held property) to simultaneously solve multiple problems. Gen Zs are facing an out-of-reach real-estate market and continued housing instability, while their parents want support and the possibility of aging in place.
In February 2025, according to the Canadian Real Estate Association, the average sale price for a home in Canada was $668,097. On top of that, nationwide home sales are down by 10.4 per cent compared to the same time last year — people aren’t buying. With the average monthly salary of Gen Zs ranging from $1,400 (16-24 years) to $3,908 (25-34) according to Indeed, it’s not surprising families are getting creative.
Beyond the sense of stability that comes with homeownership, co-owning opens the door to sharing monthly expenses and property maintenance, which lightens the load for everyone. Future child and eldercare issues could also be solved with intergenerational living situations — depending on how well you all get along, of course!
Which leads us to…
How to do Co-Ownership Right
To avoid financial and familial disaster, make sure any home co-ownership agreement is clear, comprehensive and airtight upfront. By doing the work upfront — both legally and relationally — you can help avoid potential disaster down the line. Seek out a real-estate agent who specializes in multi-owner properties as they’ll know the ins and outs of these types of arrangements.
Think through all possible scenarios, even the worst-case ones, and come up with a plan. Take those to a lawyer or mediator and draw up a document to sign so everyone is on the same page. For example, what will happen if/when someone dies? How does that affect the mortgage payments, the will or the property deed? Who has life insurance and what payments would it cover? Are there other siblings to consider or a primary residence that could affect the estate?
Fairness and equity are key to protect everyone’s financial interests, and their relational health… especially if you’ll be living together.
Related: Where 20-to-30-Year-Old Canadians Are Actually Buying Homes
Before Signing, Read This
Walls can be thin, boundaries may be hazy, and families are, well, complicated.
Before getting into a home co-ownership situation with any family member, have an honest talk (or many talks) with them. Be clear on expectations and responsibilities — this sort of legal, financial and emotional agreement is extremely complex.
Getting into an agreement is easy, but getting out can be a lot harder. The only constant in life is change. Divorce, death, marriage, estrangement, job loss, illness or a new baby, these major life events can turn everything upside-down. Any home co-ownership agreement needs to include steps on how parties can get out in a reasonable, responsible way.
Now that all the scary shoptalk is out of the way, let’s focus on the good stuff: stability, support, love and a shared investment in your family’s future. Find us a parent or young adult that doesn’t want that.
