Frank DeBernardo: Exploring New Paths to Homeownership for Millennials and Gen Z Buyers

Frank DeBernardo is a seasoned real estate professional based in Capitola, California, where he serves as broker and owner of PORTFOLIO Real Estate. With a long career in Santa Cruz County real estate, Frank DeBernardo has overseen numerous commercial and residential transactions, including luxury oceanfront properties such as 1307 W. Cliff Drive. Before founding PORTFOLIO Real Estate, he owned The Brokerage and previously managed DeBernardo Real Estate, guiding multimillion-dollar property sales and leading dedicated real estate teams. A graduate of the University of California, Santa Barbara, he earned a degree in business economics and a minor in global peace and security. Drawing from decades of industry insight, Frank DeBernardo offers perspective on emerging trends like new paths to homeownership for Millennials and Gen Z buyers, including co-buying, house hacking, and innovative approaches to property investment.

New Paths to Homeownership for Millennials and Gen Z Buyers

Owning a home feels out of reach for many young Americans as housing costs climb across the nation. Mortgage rates have also more than doubled in just а few years. Student loan balances and stagnant wages compound these challenges, pushing traditional homeownership beyond reach for many younger buyers. These pressures force this group to explore new approaches to homeownership.

Co-buying (purchasing a home with friends, siblings, or other non-romantic partners) has emerged as one response to housing affordability constraints. Young buyers are pooling financial resources for home purchases. Gen Z buyers, in particular, show greater acceptance of these partnerships, with about one-third expressing willingness to co-buy compared to less than one-fifth of Millennials. Teaming up allows younger buyers to split down payment, mortgage obligations, and maintenance costs.

Co-buying requires legal frameworks that address potential complications. Buyers create formal/written agreements that specify responsibilities for job loss, major repairs, or exit scenarios when a party wants to sell. Many establish joint accounts with several months of shared expenses to maintain financial transparency. Some combine co-ownership with equity-sharing agreements that define each person's ownership percentage based on their financial contributions to the purchase and improvements.

House hacking is one key strategy for young homebuyers who want to use their property as shelter and an income source. This approach treats homes as flexible assets that can generate rental revenue to offset mortgage costs. For instance, young buyers rent spare bedrooms, basement units, or entire properties for specific periods to reduce monthly payments. Real estate survey data shows that over half of millennial and Gen Z buyers consider rental income potential "very" or "extremely" important when choosing a home. Many younger buyers embrace house hacking because traditional salaries often aren't enough to cover homeownership costs in today's market.

Successful house hacking requires careful planning despite its income potential. When buyers apply for loans, mortgage lenders don't often consider projected rental income, which can create а hurdle. As property owners, young buyers may face vacancy periods, local rental rules, and surprise repair costs. Smart buyers research city laws and Homeowners Association rules before purchase to confirm their rental plans work within legal limits. Online communities and peer networks provide practical advice on setting up and managing these arrangements.

Rent-vesting offers another path for young buyers who want real estate investment without location constraints. It involves renting a home in one area while buying investment property elsewhere. Buyers choose to live in expensive neighborhoods that they prefer while building wealth through ownership in cheaper markets.

Unlike previous generations who viewed homes as life milestones, millennials and Gen Z treat real estate as portfolio assets for wealth building. However, rent-vesting requires paying rent and mortgage payments, which can strain budgets without proper financial planning. Success depends on thorough market research and а realistic cash flow analysis before committing to dual housing costs.

Digital tools also transform how young buyers approach homeownership today. Millennials and Gen Z use social media platforms and AI-powered tools/platforms to research properties and gather financial advice. For instance, visual search technology allows buyers to photograph and upload design elements they want (like а dream kitchen or patio) and instantly find listings with matching features. These buyers also expect real estate companies to provide virtual tours, 3D walkthroughs, and other tech that allow remote property viewing. Some platforms let buyers explore properties before construction is complete.

Human expertise remains vital despite digital advances. Research from HousingWire shows that many Millennials contact real estate agents first when buying homes, and about 43 percent of those turn to them for advice. Gen Z buyers show different patterns. About 36 percent seek guidance from financial advisors. Licensed professionals like real estate brokers and agents tailor advice in ways that general online sources cannot match.

About Frank DeBernardo

Frank DeBernardo is the broker and owner of PORTFOLIO Real Estate in Capitola, California. With decades of experience in residential and commercial transactions, he has managed luxury property sales throughout Santa Cruz County. Earlier in his career, he led The Brokerage and DeBernardo Real Estate, overseeing teams and high-value listings. A UC Santa Barbara graduate and active community member, Frank DeBernardo combines real estate expertise with a commitment to local engagement and professional excellence.