The Rise of Multigenerational Living: How Shared Homes Are Shaping Real Estate Trends in 2025

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Introduction: The New Normal for American Households

Multigenerational living-where two or more adult generations share a single household-is rapidly redefining the landscape of American real estate. Once viewed as a relic of the past, this living arrangement is now at the forefront of housing trends in 2025, driven by economic factors, shifting cultural values, and the desire for stronger family support networks. According to the National Association of Realtors® (NAR), 17% of all home purchases in the last year were multigenerational homes, marking an all-time high [1] . This surge reflects both necessity and opportunity, as families find new ways to navigate the challenges of affordability, eldercare, and childcare in today’s economy.

Why Multigenerational Living Is on the Rise

Several forces are converging to make multigenerational living more attractive and practical than ever:

• Housing Affordability: With rising home prices and mortgage rates, younger generations often struggle to purchase homes independently. Millennials and Gen Z adults, for example, earn less than their parents did at the same age, while homeownership costs remain high [5] .
• Cost of Childcare and Eldercare: Childcare expenses continue to soar, and the high cost of assisted living means many seniors prefer to age in place with family support. Shared living allows families to pool resources and care for both young children and elderly relatives [3] .
• Remote Work: The rise of flexible work arrangements post-pandemic makes it easier for multiple generations to live and work under one roof, reducing the need for daily commuting and enabling more family members to contribute to household management [5] .
• Cultural Shifts: Changing attitudes about family, support, and independence are making multigenerational homes more appealing, especially as families seek stronger connections and practical solutions to life’s demands [4] .

Who Is Leading the Multigenerational Homebuying Trend?

Data from NAR’s 2025 Home Buyers and Sellers Generational Trends Report shows that Generation X (born 1965-1980) leads the movement, with 21% of Gen X buyers purchasing multigenerational homes. This is followed by 15% of younger baby boomers (ages 60-69) and 12% of older millennials (ages 35-44) [1] . Notably, Gen X has nearly doubled its market share in this segment from 12% in 2013 to 21% in 2025, reflecting their unique position as the “sandwich generation”-simultaneously supporting both children and aging parents [2] .

Key Benefits of Multigenerational Living

Families who choose multigenerational living arrangements report a wide range of advantages:

• Economic Efficiency: Households can share major expenses, including mortgage payments, utilities, and groceries, making it easier for all generations to manage financial pressures [3] .
• Built-In Childcare and Eldercare: Grandparents can assist with childcare, while adult children provide support for aging relatives, reducing costs and enhancing quality of care [5] .
• Emotional and Social Support: Living together can strengthen bonds, reduce loneliness, and create a more resilient family unit [4] .
• Flexible Use of Space: Multi-use rooms, separate living areas, and home offices make it easier to accommodate diverse needs and schedules.

Real-World Examples and Case Studies

Consider a family in which adult children move back home to save for a down payment, while grandparents lend a hand with childcare. This arrangement can help young adults build financial security while allowing seniors to remain connected and active. According to recent surveys, more than 59 million Americans now live in multigenerational households, a number that continues to rise [5] . Another example is a three-generation household where remote workers share a home office, and family members split responsibilities for meal preparation, errands, and home maintenance.

How to Find or Create a Multigenerational Home

If you are considering a multigenerational living arrangement, there are several actionable steps you can take:

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1. Identify Your Family’s Needs: Discuss with all involved generations the desired level of privacy, shared spaces, and care responsibilities. Consider everyone’s work, school, and lifestyle requirements.
2. Research Available Homes: Look for properties with flexible layouts, such as homes with finished basements, attached suites, or accessory dwelling units (ADUs). Many real estate platforms allow you to filter listings for features like separate entrances or multiple kitchens. You can search major real estate sites such as Realtor.com or Zillow for terms like “multigenerational homes” or “in-law suites.” Always verify property details before making any decisions.
3. Consult Real Estate Professionals: An experienced agent can help you navigate zoning regulations, local ordinances, and financing options for homes designed or adapted for multigenerational living. To find a qualified agent, you can visit the National Association of Realtors’ website and use their directory to search for professionals with experience in this niche.
4. Consider Renovations: If purchasing a new home isn’t feasible, you may adapt your current residence. Popular upgrades include adding a separate entrance, expanding bathrooms, or converting existing space into a private suite. Consult with licensed contractors and check local building codes before starting renovations.
5. Evaluate Financing Options: Some lenders offer special products for buyers seeking homes with ADUs or multiple living areas. Speak to your bank or mortgage broker about your family’s needs and ask if they have experience with multigenerational or extended-family financing.
6. Plan for Legal and Financial Considerations: Draft clear agreements regarding cost sharing, household rules, and inheritance issues to avoid misunderstandings. Consulting a real estate attorney or financial planner can ensure everyone’s interests are protected.

Potential Challenges and Solutions

While multigenerational living offers many benefits, it also comes with challenges, such as:

• Privacy Concerns: Address this by designing separate living areas, using soundproofing measures, and establishing household schedules.
• Dividing Responsibilities: Create a written agreement outlining chores, expenses, and care duties. Regular family meetings can help resolve conflicts.
• Legal and Zoning Issues: Some municipalities restrict the use of ADUs or require specific permits for multi-unit dwellings. Check with your city or county planning department before making any changes to your property.

Alternative approaches include renting a duplex or two-family home, or joining a co-housing community designed for shared living. These options can provide similar advantages with built-in privacy and structure.

How to Access Resources and Support

For families interested in exploring multigenerational living, here are practical pathways:

• Real Estate Search: Use major real estate platforms and search terms like “multigenerational home,” “in-law suite,” or “ADU.” Always read full listings and verify features directly with the listing agent.
• Professional Guidance: Contact local real estate agents through established organizations such as the National Association of Realtors. Confirm the agent’s experience with multigenerational housing by asking for references or case studies.
• Legal Advice: To ensure compliance with local regulations, consult a real estate attorney or contact your city’s housing department for zoning information.
• Financing Options: Speak directly with your existing bank or credit union, or use official lender directories provided by government housing agencies. For federally backed mortgages or down payment assistance, you can search for programs on the U.S. Department of Housing and Urban Development’s official website by looking up “multigenerational home financing.”

If you are unsure where to begin, consider reaching out to your local Area Agency on Aging for eldercare resources, or your state’s housing department for information on family housing programs. Conduct web searches using key phrases like “multigenerational home programs” and specify your city or state to find local opportunities.

Key Takeaways and Future Outlook

The trend toward multigenerational living shows no signs of slowing down. With economic pressures, demographic shifts, and evolving work patterns, more American families are embracing shared living as a practical, cost-effective, and emotionally supportive solution. As real estate markets adapt to this growing demand, expect to see more homes designed with flexible layouts and amenities for multiple generations. Whether you are seeking to buy, renovate, or simply explore this trend, careful planning and open communication are essential for success.

References

• [1] Realtor.com (2025). Multigenerational Homebuying Hits All-Time High-and Here’s Who’s Leading the Charge.
• [2] National Association of Realtors (2025). One Big Happy Household: How Families and the Data Are Shaping Multigenerational Living.
• [3] Federal Reserve Bank of Boston (2025). Housing Trends: Older Households Are Moving Less, and Multigenerational Living Is Rising.
• [4] Good Housekeeping (2024). Multigenerational Homes Are On the Rise – Here’s Why.
• [5] Team Anil Sells NY (2025). Warren Buffett’s Berkshire Hathaway Predicts the Next Big Housing Trend.