Grandparents are moving in. Young adults are boomeranging back after college or sticker shock from rental rates. As a result, the empty nest may be be a fading concept. The multigenerational home has emerged as a growing trend in U.S. real estate — and housing experts expect it to become even bigger in the years to come.
What Is a Multigenerational Home?
A multigenerational home is at least three generations living together under one roof, according to the Census Bureau. This could include grandparents or an adult child who has moved back home. These “all in the family” households — common before the 1940s — are back on the rise. In fact, from the 1970s to 2021, the number of multigenerational households quadrupled, according to the Pew Research Center. What’s more, in 2024, multigenerational home buying rose to 17%, the highest share ever recorded for home-buying activity in a given year, according to the National Association of REALTORS®.
Despite the growing demand, many consumers may find purchasing a home to fit generational needs isn’t so simple. Housing experts have criticized the housing stock for falling short on the rising demand for multigenerational homes.
Benefits of Multigenerational Houses
Recent home buyers say their top reasons for purchasing a multigenerational home are cost savings, elder care, and young adult children moving back home, according to NAR’s “Profile of Home Buyers and Sellers 2024” report. Here’s a closer look at some of the possible benefits in combining households:
Cost Savings and More for the Money
Cost savings are a big driver for living in a multigenerational home, says Todd Luong, a real estate pro with RE/MAX DFW Associates in Frisco, Texas. He has noticed the trends of more siblings pooling financial resources to qualify for a mortgage and young adults moving back with their parents to cut expenses. “There are a lot of first-time home buyers who are on the sidelines right now because of record high home prices and elevated mortgage rates,” Luong says.
Plus, combining finances with family members may allow multigenerational households to purchase a larger house or one in a more desirable area. “Those who live in high-priced and coastal areas are finding multigenerational housing an appealing option,” adds Paul Dashevsky, co-CEO of Maxable in Los Angeles, an online platform for homeowners considering building an accessory dwelling unit He adds that ADU popularity has grown in tandem with multigenerational living.
Reprioritized Family Relationships
Home buyers lately say they’ve wanted to move to be closer to friends and family — more so than for a job, housing affordability, or better schools, according to NAR’s 2024 Migration Trends report. “Americans have reprioritized their family relationships [after] emerging from the COVID-19 pandemic,” says Jessica Lautz, NAR deputy chief economist, who studies demographic trends that could reshape the housing market. Nearly 80% of Americans living in a multigen home say the setup enhances bonds or relationships among family members. Seventy-six percent cite positive impacts on their mental and physical health, according to a survey from Generations United, a nonprofit that supports intergenerational programs and policies.
Elder or Child Care
With multigen living, grandparents may move in to help care for grandchildren — or vice versa. About a third of multigenerational households cite caregiving as a top reason for combining households, including 25% who cite adult caregiving, according to Pew Research Center data. Gen Xers, currently 45 to 60 years old, are the most likely to live in multigenerational households (at nearly 20%), according to the 2024 NAR Home Buyers and Sellers Generational Trends report. “Gen Xers are the most likely generation to have both older relatives and young adults who are in need of a place to call home and may look to either their parents or children to find a home,” Lautz says. “As millennials age, this trend will continue to be passed along to the next generation.”
Multigenerational Home Features
There’s no one-size-fits-all for a multigenerational home. Depending on personal preferences and housing availability, families may opt to retrofit an existing home or even build a new home.
Popular Multigenerational Home Design Features
Households prefer features that best fit their family members and preferences, but these are popular choices:
- Separate entrances
- Accessibility features (for example, wide doorways, grab bars, ramps, slip-resistant flooring)
- Two full kitchens or a separate kitchenette (for light snacks, morning coffee, etc.)
- Multiple private suites with full bathrooms
- HVAC zoning
- Soundproof interior walls and floors
- Spacious communal areas, like a great room
- Walk-in shower with grab bars
- Dual laundry rooms
- Elevator or stair lifts for two-story homes
- Multiple outdoor spaces
- One-story living options
Options to Create a Multigenerational Home
Options for multigenerational living include these four:
Remodeling an Existing Home
Luong says most of his clients in a multigenerational household often want to make an existing home work. They may prioritize homes with features like an extra bedroom and bath on the first floor, particularly for older household members. They may also explore adding accessibility features, like a walk-in shower with grab bars.
Remodeling options include finishing and converting a basement or attic into an apartment or building an addition onto the home’s main floor. They can also rearrange existing home layouts, for example by adding walls, to create more private spaces. “When buying a multigenerational home, it’s important to look for features like the number of bedrooms, separate living spaces, and bathrooms” to make sure it’s adequate for all family members, says Jhon Blando, owner of Bloom Homes in Ontario, Canada.
Tip: Homeowners who want to renovate a home for multigen living should prepare to hire a contractor and obtain any necessary permits. A real estate professional can recommend reputable contractors and may suggest bringing in contractors to walk through the property and price out renovation costs before a home purchase.
Building an Accessory Dwelling Unit
In cities that allow them — not all currently do — ADUs have emerged as a growing option for multigenerational living. ADUs are independent, secondary living spaces either attached to a main house or detached and located in the back or on the side of the yard. These are also sometimes called in-law suites, backyard cottages, or granny flats. “We see lots of clients considering adding space to their home for the purpose of multigenerational living,” says Dashevsky. “More families prefer to have their aging family members living near them rather than in a senior housing community. [So] families are adding a separate space for their aging parents.” They may covert a garage into a “junior ADU” or build a detached ADU in their back yard. Some homeowners also build ADUs as an independent living space for adult children who return after college, Dashevsky notes.
ADUs can offer a private dwelling separate from the main home, often coming with its own bedroom and bathroom, kitchen, and separate entrance. Dashevsky says converting a garage into a living unit — of about 350 to 400 square feet — tends to be the lowest cost option for an ADU, since you’re leveraging existing space. Detached ADUs, often ranging in size from 400 to even 1,200 square feet, can take four to eight months to construct, require city approvals, and can vary drastically in costs, ranging from $150,000 to $400,000. Dashevsky says in California buileint a detached, one-bedroom, one-bath ADU that’s about 500 square feet would cost around $150,000 to $200,000.
Constructing a New Home
Some families may combine their finances to build a new home together. Major builders — like Toll Brothers, D.R. Horton, and Taylor Morrison — are marketing floorplans that cater specifically to these households.
National homebuilding giant Taylor Morrison notes they now offer more floorplans and housing options that accommodate this household makeup. Options are en-suites, casitas, and dedicated secondary living spaces.
“Multigen comes in many forms and shapes, from a basic spare bedroom on the first floor to a complete and separate suite with a kitchenette, dining, living, laundry, outdoor space, and garage,” says Brian Juedes, vice president of product design at Taylor Morrison. When building, buyers of multigen homes should prioritize adding home accessibility features during construction to accommodate the different ages, he suggests. Juedes adds that age-in-place features — like blocking walls to install future grab bars — can improve accessibility and tend to be a desired home feature.
Related Link: 7 Things You Wish You Knew Before Building New Construction
Choosing Neighboring Condos, Duplexes, or Triplexes
In the Atlanta condo market, some buyers are opting for smaller unit or studios in the same condo building as their aging parents, says Jeremy Smith, a real estate professional at Engel & Völkers Atlanta “It’s the modern-day twist on the in-law suite,” he says. “Whether it’s a few floors away or in a separate unit altogether, this setup gives families the perfect balance of togetherness and independence. I’ve even had clients buy condos for both sets of parents and their children, all in the same building creating a family-friendly ecosystem.”
Condo buildings and duplexes — homes with separate entrances but even possibly side-by-side — offers family members a way to live next to one another while keeping more independence and privacy than if they all lived under the same roof.
What to Consider With a Multigenerational Home
| Pros | Cons |
|---|---|
| 💰 Financial benefits – Shared costs can make home ownership more affordable. | 🚪 Less privacy – Boundaries may be needed. |
| 👵 Built-in caregiving – More adults means more support for aging relatives or childcare. | ⚡ Potential conflicts – Living together can strain relationships. |
| 🏡 Shared responsibilities – Household tasks become more manageable. | 🏥 Caregiver burnout – Long-term care needs can cause stress. |
Moving in with family members should never be taken lightly, says John L. Graham, longtime researcher and co-author of several books including “Under One Roof,” a guide to multigenerational living.
“Multigenerational living doesn’t work for everybody,” Graham says. “While there are all kinds of financial and psychological benefits, it isn’t for everyone.” Relationships can be strained if families don’t go in prepared, he says. He recommends doing a trial run, for example, by families taking an extended vacation together. That way they can judge the relationship dynamics before all moving in together.
Before planning a move to a multigenerational household, consider these factors:
Financial and Emotional Issues
Graham recommends setting some house rules to avoid family conflicts. For example, consider who will pay the utilities, the mortgage, or other household items? Who will be in charge of which household chores? He urges those who are bringing aging parents into their home to include adult siblings in decisions about the finances of the loved one to help avoid family conflicts.
In interviewing hundreds of people over the years who live in multigenerational homes, Graham and his co-authors found the style of the home matters in helping these relationships work over the long haul. For example, a separate entrance and a separate full kitchen from the main house are important, he says. A separate entrance offers a sense of independent living as well as privacy. “One of the main frictions we found [with multigenerational homes] involves the kitchen,” he says. “Who’s going to put the dishes away? Who’s cooking? Who owns the pots and pans? Having a separate kitchen is key” to avoiding conflict.
Also, some home styles do not work well when combining households. For example, if an aging adult is moving into a home, putting them upstairs in an in-law unit “makes no sense,” Graham says. “If you fall going up the stairs, you break a wrist. If you fall down the stairs, you can die. Safety and comfort in the household need to be prioritized.”
Long-Term Needs
Consider a home that can adapt as household needs change. “Especially if bringing elderly people into the home, their health can deteriorate,” Graham says. He recommends considering factors like one-story living to make the home more accessible or wide hallways to accommodate a wheelchair. Also, think about how you might retrofit an ADU that one day may no longer be needed. For example, you could convert it into a rental space that could generate extra income for the household.
Related link: 6 Tips for Maximizing ADU or Rental Property Tax Deductions
Resale value
“It is very important to think clearly about how title will be held when buying a home with multiple family members,” Luong says. “It may not seem like a big deal when buying a home, but things can get messy very quickly when it comes time to sell.” Likewise, the household should consider the home’s resale value when making their purchase decision, particularly if they’re renovating a garage or building an addition to accommodate multiple generations. Luong admits these types of homes are not always the easiest to sell, especially if they tend to be the largest and most expensive in a neighborhood. “The home may fit all the needs of your multigenerational household, but will it fit the needs of other households?” Luong says.
In working with a real estate professional, families can weigh the potential resale value of renovations or additions they have planned. Also, one day, when you sell, team with an experienced real estate agent so they can help market the home to appeal to and be findable by multigenerational home buyers.
After all, as Luong notes, “I still believe that this multigenerational home trend will continue to grow as housing in America becomes more expensive relative to people’s earning power.” And these homes may one day be the most coveted ones on the block.