Think Outside the Mortgage: Creative Ways to Buy a Home in 2025

Overwhelmed by high home prices, interest rates, or the feeling that you’re “just not ready” to be a homeowner yet?

You’re not alone, Here's creative ways to buy a home in 2025.

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

So what are they doing instead? They’re getting creative.

Here are the four most popular alternative buying strategies young buyers are using to make homeownership work in 2025, plus how to know if one might be right for you.

1. Buying a Fixer-Upper (Creative Ways To Buy a Home #1)

Used by: 42% of buyers surveyed Good for: Handy buyers who want more space for less money not great for: Those who need move-in-ready or have limited renovation budgets

Buying a home that needs a little love can be one of the smartest ways to get into a neighborhood you otherwise couldn’t afford. In many markets, fixer-uppers sell for 10–30% below comparable move-in-ready homes.

Pros:

• Lower upfront cost

• Opportunity to build equity fast

• Potential for customization

  
  

Cons:

• Renovation costs can add up quickly

• May require permits, inspections, and time

• Harder to finance with certain loan types

  
  

If buying a fixer-upper appeals to you, be sure to ask your agent about renovation loan options like FHA 203(k), which rolls reno costs into your mortgage.

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2. Co-Buying With Friends or Family

Considered by: 21% overall, but 32% of Gen Z Good for: Buyers with trusted partners who want to pool resources not great for: Those with unclear agreements or mismatched financial goals

Co-buying is on the rise, especially among Gen Z buyers, who are teaming up with siblings, friends, or partners to afford a home together. If done right, it can cut your expenses in half and double your buying power.

Pros:

• Shared down payment and monthly costs

• Larger budget for a better home or location

• Built-in support system

  
  

Cons:

• Requires clear legal agreements

• Disagreements can affect finances and relationships

• Resale or exit strategy needs to be defined in advance

  
  

Interested in co-buying? Make sure both parties are on the same page. Have a real estate attorney draft a co-ownership agreement outlining who pays for what, how equity is split, and what happens if one person wants to sell.

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

Used by: Nearly 1 in 5 buyers (18.6%) Good for: Buyers open to becoming landlords or living with tenants not great for: Those who value privacy or want a single-use space

“House hacking” means buying a property with built-in rental income, like a duplex, ADU, or even a basement apartment you can rent on Airbnb or to a long-term tenant. The goal is to offset part (or all!) of your mortgage.

Pros:

• Generates passive income

• Helps cover your monthly mortgage

• Can turn your home into a long-term investment

  Cons:

• Zoning or city regulations may restrict rentals

• You may have to share space or manage tenants

• Requires extra insurance and financial planning

  
  

Make sure you check out local short-term rental (STR) laws before counting on rental income. Not all cities allow it, or they may require permits.

4. Relocating to a More Affordable Area

Considered by: 47% of buyers surveyed Good for: Remote workers, flexible buyers, or those priced out of their current market Not great for: Those tied to one specific school district, job location, or community

Remote work has changed the homebuying game. Nearly half of young buyers are considering moving to lower-cost areas where their money stretches further.

Pros:

• More square footage for your budget

• Lower property taxes and living expenses

• Opportunity to build wealth faster

Cons:

• May require changing jobs or adjusting commute

• Fewer amenities or slower appreciation in some areas

• Harder to preview homes in person if moving far

  
  

Ask your agent about up-and-coming areas or suburbs just outside the “hot zone.” You may find hidden gems with high upside.

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Final Thoughts: Be Creative—But Get Informed

In 2025, the path to homeownership isn’t one-size-fits-all. The good news? There are more options than ever, and you don’t have to figure it out alone.

Whether you’re thinking about teaming up with a friend, buying a fixer-upper, or moving out of state, make sure you weigh your options, crunch the numbers, and find the right fit.