In 2024, multigenerational home purchases accounted for 17%1 of all home sales, marking the highest share ever recorded by the National Association of REALTORS® (NAR). Generation X is leading the charge, with 21% opting for such homes, followed by 15% of younger Baby Boomers2. This trend continues to rise, according to a new survey by Veterans United Home Loans, which finds that 28% of prospective buyers currently plan to purchase a multigenerational home. In this blog, we’ll review key factors driving the trend and things to consider if you’re planning on purchasing a multigenerational home.
FACTORS CONTRIBUTING TO THE RISE
• Financial concerns: A major driver in multigenerational housing is affordability. High housing costs, soaring healthcare expenses, rising childcare fees, the rising costs of daily necessities and student loan debt are all driving factors in the decision for multigenerational living. By pooling resources in a shared household, families can reduce their overall financial burdens and create a more sustainable path toward economic stability.
• Caregiving needs: Many families are preparing for long-term caregiving needs for elderly parents and other family members or require childcare assistance. Multigenerational homes provide a built-in support system where family members can receive the attention and assistance they need at every stage of life.
• Cultural shifts: As societal views on family dynamics evolve, more people are embracing the idea of multiple generations living together. Traditional, independent living arrangements are shifting toward an emphasis on intergenerational support that encourages stronger familial bonds and shared responsibilities. Additionally, some communities have long supported multigenerational living, and as diversity expands, these traditions are influencing broader living arrangements.
• Builder adaptations: The growing demand for multigenerational homes has led builders to adapt to developing spaces that cater to multiple generations living under one roof, such as offering homes with separate living quarters within a single-family home or detached options like accessory dwelling units (ADUs). Builders have also designed step-free entrances, wider doorways and layouts that accommodate aging family members.
IMPORTANT THINGS TO CONSIDER
1. Finances and Expenses
• Ownership: Families should fully understand and carefully consider how ownership will be structured and transferred over time. Choosing the right vesting option, such as Tenants-in-Common (TIC), Joint Tenancy or Trust, can help protect your family interests and facilitate a smooth transition of ownership. To learn more about co-ownership vesting options, click here.
Families may also want to factor in the various mortgage loan options available, from conventional, FHA and jumbo loans to Veterans Affairs (VA) for families with eligible military members. Some lenders may offer non-qualified mortgages (non-QM) that provide alternative financing solutions for families with unique income structures or credit histories. If renovations are needed to accommodate multiple generations, home improvement loans can help finance those upgrades.
• Cost-sharing. Families should be prepared to decide how expenses like mortgage payments, property taxes, utilities and groceries will be divided among family members. Dividing expenses can be based on income levels, usage or specific contributions. Long-term expenses, such as home maintenance and improvements, and healthcare support should also be considered. To clarify responsibilities and prevent conflicts, set up a formal written agreement and budget that fully communicates each family member’s financial responsibility.
2. Household Responsibilities
• Chores: Assigning household responsibilities fairly and pragmatically will keep things running smoothly. For example, younger family members might take on more physically demanding tasks, while older relatives may handle more organizing and mentoring roles. Setting clear expectations and establishing a chore schedule can help prevent misunderstandings. Frequent check-ins and evaluations are a must as chore assignments may require adjustments to accommodate evolving needs.
• Childcare or Eldercare: If elderly relatives or young children require care, plan accordingly. For childcare, consider daily tasks that will require assistance, such as who will be responsible for school drop-offs and pick-ups, lunch preparation and homework assistance for the children. Similarly, who will handle eldercare needs, such as medical assistance. Open communication is key when it comes to setting expectations and preventing conflict and resentment.
3. Privacy and Boundaries: To foster a harmonious environment, establish clear rules for shared spaces and personal time. Setting schedules for shared areas, such as bathrooms, the kitchen and living spaces, will help to promote comfort and respect. Defining specific boundaries, whether it’s knocking before entering, agreeing on quiet hours or keeping the kitchen clean will help to maintain unity, even with varied lifestyle preferences. Open and honest discussions should be a priority to make sure all family members’ needs are met.
4. Long-Term Sustainability: Anticipate how the living situation might change over time and ensure the home can adapt to evolving needs. Discuss estate planning options for events such as an elder member passing away, or opt-out agreements if younger generations want to move out. Proactively addressing these circumstances can help to clarify succession and other adjustments and prevent disputes.
IS A MULTIGENERATIONAL HOME RIGHT FOR YOU?
Deciding whether a multigenerational home is the right fit requires careful weighing of financial and lifestyle considerations. While shared living offers economic benefits, built-in caregiving and stronger family connections, it also requires clear communication, privacy solutions and long-term planning. Buyers should assess their family’s unique needs, financial situation, and ability to navigate shared responsibilities before making the leap. When you’re ready to find a home that fits your family’s unique needs, Old Republic Title is here to facilitate your closing. To find an office near you, visit oldrepublictitle.com/locations.
1 Copyright © 2024. “Profile of Home Buyers and Sellers.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. November 2024. https://www.nar.realtor/sites/default/files/2024-11/2024-profile-of-home-buyers-and-sellers-highlights-11-04-2024_2.pdf
2 Copyright © 2025 “Home Buyers and Sellers Generational Trends Report 2025.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. April 1, 2025. https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends