July 22, 2025

With more sellers putting their homes on the market this year we’re seeing more inventory, which is starting to lead to some leveling out in prices in some areas. A good thing. But prices are still high, and with the median sold price of $705,000 in Placer County for June 2025 and of $549,450 for Sacramento County, it’s no surprise that some buyers feel like the dream of owning a home is slipping away. But what if there were a few creative, realistic ways to consider that could get your foot in the door?

Let’s explore some unconventional, but smart, paths that could help you achieve homeownership in today’s market.

Team Up with Family: Multi-Generational Living

As of 2024, about 20% of Americans are living in multi-generational households, a number that continues to grow. This approach isn’t new, it’s actually a throwback to how lots of families lived decades ago and it’s seeing a major comeback in today’s housing environment.

By pooling income and down payment funds with other family members, buyers are able to:

• Qualify for larger homes or homes with ADUs (Accessory Dwelling Units)
• Share expenses like the mortgage, taxes, insurance, and maintenance
• Create a supportive environment where elderly parents avoid costly assisted living
• Have built-in childcare from grandparents or extended family

Of course, living with multiple generations under one roof isn’t for everyone. It takes communication and compromise, and if you can do it, it’s a way start your real estate ownership journey and build equity together.

Expand Your Location Search

Dreaming of that home near the city center or within minutes of your job, but everything in the area you have your heart set on is just too expensive? It might be time to consider looking farther out.

By looking outside city centers you may find more affordable homes. Sure, it might involve a longer commute, but the potential savings in your purchase price and property taxes could be worth the tradeoff.

And with remote and hybrid work still a thing for many people, moving a bit further out could mean getting into a home within your price range without giving up too much.

Start Smaller and Think Long-Term

If that dream home with a pool feels out of reach, consider starting with something more modest.

Remember- you don’t have to buy your forever home first. I think most homeowners, including myself, (my first home was a 1000 square foot half-plex with a one car garage) start with a smaller, more affordable property and work their way up. This allows you to build equity as your home appreciates so that you can eventually move up to a bigger home that better suits your long-term needs. And over time while you’re building equity, you will most likely be improving your financial position (think pay raises and increased savings) which will put you into a better position for that next home.

Buying a smaller home isn’t settling, it’s strategic. It gets your foot in the door of the real estate market, where you can begin accumulating equity.

Use Gifted Funds from Family

Down payment help doesn’t always have to come from your own savings.

Many buyers use gifted funds from family members, often parents or grandparents, (but also aunts, uncles, cousins, in-laws) to cover their down payment or closing costs. The IRS gift limit increased to $19,000 per donor in 2025, which means:

• One parent could gift $19,000 to you and $19,000 to your spouse, totaling $38,000 in tax-free gifts
• Two parents could do the same, doubling that to $76,000
• And if you add in contributions from grandparents, aunts, uncles, cousins, etc., the total gift pool can really add up quickly

You should always consult with a tax professional or CPA before accepting or transferring gifted funds to avoid unintended tax consequences, but when done right, this can be a powerful tool to boost your buying power.

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Homeownership isn’t a one-size-fits-all journey. Whether it’s joining forces with family, adjusting your location, or simply starting smaller, there are multiple ways to make it work.

If you’re feeling like you’re getting priced out of the housing market, you’re not alone. Don’t give up. Sometimes all it takes is getting a little creative and thinking outside the box. There can be a path forward, and it may be closer than you think.