Living with multiple generations is becoming more common. The National Association of Realtors (NAR) reports that 17% of buyers buy a house to live in with their parents, adult children, or other family members. According to the graph below, that is the largest share that NAR has ever recorded:
And why has it increased? Affordability, as explained by NAR:
“In 2024, a notable 36% of homebuyers cited “cost savings” as the primary reason for purchasing a multigenerational home—a significant increase from just 15% in 2015.”
In the past, providing care was the main incentive, particularly for people who wanted to help their elderly parents. And although that remains significant, the primary motivator today is affordability. And that’s hardly surprising given the state of the market.
Pooling Resources Can Help Make Homeownership Possible
It can be challenging for people to afford a home on their own given current mortgage rates and home prices. More families are banding together and combining their resources as a result.
A solution to financial obstacles that might otherwise make homeownership unattainable is multigenerational living, which involves splitting incomes and splitting costs such as the mortgage, utilities, and other costs. According to CJ Patrick Company founder and CEO Rick Sharga:
“There are a few ways to improve affordability, at least slightly… buy a property with a family member — affordability is one of the reasons why there are more and more multigenerational households in the country today.”
But affordability isn’t the only benefit of this tactic. Everyone has a little more breathing room because it might even enable you to purchase a bigger house than you could on your own. As explained by Veterans United’s VP of Mortgage Insights, Chris Berk:
“More than just a fad, multigenerational homes offer families a practical way to take care of each other while maximizing their purchasing power.”
Additionally, momentum might be increasing. Almost three out of ten (28%) homebuyers say they intend to buy a house that can accommodate multiple generations.
Perhaps it’s a solution that makes sense for you as well. What’s the best way to know? To find out if this is a good option for you, speak with a local real estate agent.
Bottom Line
Purchasing a multigenerational home might be a wise choice if money is tight.