Why multigenerational homes are shaping real estate

Once common in American life, the multigenerational household is staging a strong return. From the early 1900s through the postwar boom, it became typical for extended families to live apart as independence and suburban living gained popularity. Today, economic pressures and social change are reviving this arrangement. More families are rediscovering the value of living together under one roof, bridging generations to share expenses, offer support, and adapt to modern housing challenges.

Why families are choosing multigenerational living again

A mix of financial, cultural, and demographic factors is driving this revival. High mortgage rates and limited housing supply have made it tougher for younger generations to buy their own homes. According to Angi’s State of Home Spending survey, 1 in 4 homeowners now live in a multigenerational household. For many, sharing a home with parents or adult children is a practical way to manage costs.

Families also rely on multigenerational living to cover growing childcare and elder care needs. The National Association of Realtors reports that more than a third of multigenerational buyers cite cost savings as the main reason for their purchase. Grandparents often help with childcare, while younger adults help aging relatives stay at home instead of moving into assisted living.

Who’s living together and why

Recent figures highlight who is driving this shift. The National Association of Realtors’ 2025 Home Buyers and Sellers Generational Trends report shows that 17 percent of all buyers purchased a multigenerational home between July 2023 and June 2024, up from 14 percent the previous year. Generation X, born between 1965 and 1980, leads the way, with 21 percent choosing this living arrangement.

Adult children moving back home is a major factor. Twenty-one percent of these households exist because children over 18 returned home, while another 20 percent never left. Rising student debt and a tight job market make it more likely for adult children to stay longer than previous generations.

At the same time, America’s aging population is driving up elder care needs. One-quarter of buyers in 2024 said they bought a multigenerational home to care for aging parents.

How multigenerational living is reshaping the housing market

This shift is changing what buyers want. There is greater demand for larger homes with flexible layouts. Buyers look for features like first-floor bedrooms, accessible bathrooms, and extra suites or accessory dwelling units for grandparents or adult children.

Real estate agents report more interest in mother-daughter homes or properties with separate entrances and small kitchen areas. Angie Hicks, co-founder of Angi, notes that these households often take on larger renovations to create privacy and comfort for multiple generations.

Builders are meeting this demand with designs that include in-law suites, basement apartments, or garage conversions. As housing shortages continue, multigenerational homes help families adapt rather than compete for scarce inventory.

Challenges and opportunities for families and builders

Multigenerational living comes with challenges. Families must balance privacy and shared spaces, manage finances, and follow local zoning rules for additions like accessory units. More local governments are updating rules to allow these projects.

For builders and real estate pros, the trend opens new market opportunities. Flexible floor plans, modular additions, and creative use of space are becoming strong selling points. Demand for adaptable housing will likely shape design and construction for years.

Economic pressures, longer life spans, and changing social values suggest multigenerational living will keep growing. As housing costs stay high and families seek support systems under one roof, this trend could become a new norm.

In the next decade, builders and policymakers are expected to expand flexible housing options for extended families. For many, the return of the multigenerational household may be the future of homeownership in the United States.

Sources:
Good Housekeeping