As housing affordability continues to challenge homebuyers, President Donald Trump has expressed concerns about a proposal that would allow individuals to withdraw money from their 401(k) retirement accounts to use as a home down payment. Trump has emphasized protecting long-term retirement savings, noting that many 401(k) accounts are performing well and should remain focused on future financial security.
The proposed 401(k) withdrawal plan for homebuyers is part of a broader White House effort to address rising home prices, higher mortgage payments, and increasing down payment requirements. However, as debate continues around the proposal, many buyers are already exploring alternative paths to homeownership.
Platonic Co-Buying: A Growing Homeownership Strategy
One alternative gaining momentum is co-buying a home with friends or family, sometimes called platonic co-buying. This approach allows buyers to pool financial resources, share mortgage costs, and qualify for homes that might otherwise be out of reach.
According to the National Association of Realtors (NAR), the average age of first-time homebuyers has increased, with the typical buyer now reaching an all-time high of 40 years old. Single buyers—particularly single women—also represent a significant share of the market, highlighting a shift away from traditional homebuying models toward more flexible ownership arrangements.
Why Co-Buying Appeals to Today’s Homebuyers
Housing experts say co-buying offers several advantages:
- Reduces the need to tap into retirement savings
- Increases purchasing power
- Helps buyers afford higher home prices while sharing monthly housing costs
- Allows homeownership to be treated as a long-term investment
However, experts caution that co-buying requires careful planning, including clear legal agreements that define exit strategies. Open communication, aligned financial goals, and financial compatibility are essential to avoid future conflicts and protect all parties involved.
Housing Market Conditions Continue to Influence Buyer Decisions
Recent data shows that monthly housing payments have declined slightly, but home sale prices remain elevated in many markets. While some metro areas have experienced modest price drops, others continue to see price growth, reinforcing the need for creative affordability solutions.
Meanwhile, the Trump administration has explored additional policies, including a temporary cap on credit card interest rates and restrictions on institutional investors purchasing single-family homes. Both proposals have drawn criticism from financial and housing industry experts concerned about unintended market impacts.
Rethinking the Path to Homeownership
As the housing market evolves, strategies like co-buying reflect a broader reimagining of the American Dream of homeownership. For many buyers, sharing ownership may offer a practical alternative to tapping retirement accounts—balancing affordability today with financial security for the future.
Get pre-approved today, so you can shop tomorrow! Mortgage rates change daily and depend on your unique situation—contact EB Mortgage to find the best option for you.
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Written by the Digital Marketing Team at Creative Programs & Systems: https://www.cpsmi.com/.