Could Buying a Home With Your Parents Be Your Ticket to Ownership?

It's an option worth looking at.

If you've been struggling to afford a home in today's market, you're not alone. In January, the median home sales price increased to $359,000, up 1.3% from a year prior, according to the National Association of Realtors.

Now that wouldn't be so bad if mortgage loans weren't so expensive. But because mortgage rates remain elevated, many would-be buyers are finding that they just can't swing a home purchase based on their limited financial resources.

If that's the situation you're in, you may be considering the idea of buying a home with your parents. That way, you can split the down payment, split the mortgage, and split the ongoing expenses, from property taxes to maintenance to homeowners insurance.

But is buying a home with your folks a good bet? Or is it a move you might regret?

The upside of buying a home with your parents

One major benefit of sharing a home with your parents is sharing its costs. But beyond that, having multiple owners means there are more people to tackle things like maintenance and repairs. If you have a demanding job, that could be a plus.

Also, if you have a great relationship with your parents (which, if you didn't, you probably wouldn't be contemplating a joint home purchase), living together could prove to be a rewarding experience. And if you have young children and at least one of your parents is retired or only works part-time, you might benefit by gaining some built-in childcare.

The downside of buying a home with your parents

Parents, by nature, tend to have a tough time not parenting. So even if your folks are wonderful people who you enjoy spending time with, you might find that living with them as an adult isn't such a terrific experience. After all, when you're 35, do you really want to be reminded to bring a jacket when you go out at night?

Also, while it may be nice to have your parents close by, too much closeness could be a bad thing. It's not fun feeling like you don't have privacy.

Plus, you and your parents are clearly at different stages of life. But what happens when one of your needs changes?

What if your parents decide to retire fully and relocate? What happens to the home then? Or, you might decide to relocate for a new job, or a better school district. But these decisions become tricker any time you have a joint homeownership situation. And when your joint owners are your parents, there's the potential for feelings to get hurt in a really bad way.

What's the right call?

Clearly, there are pros and cons to buying a home with your parents. One thing you may want to ask yourself, though, is "Would I be buying a home with my folks if the housing market weren't so expensive?" If the answer is no, and your more ideal situation is to buy a home on your own or jointly with a spouse or partner only, then you may want to hold off until prices cool down or your personal finances pick up.

Any time you buy a home, you're making a big commitment. Buying one with your parents adds a whole layer of complication. So if you're feeling iffy about the idea of purchasing a home jointly with your parents, then you may be better off going with your gut and saying no to that idea.