The Rise of Multi-Generational Home Buying

CHICAGO — The concept of multi-generational housing — homes that have adult siblings, adult children over the age of 18, parents and/or grandparents residing with the primary home buyer — has been gaining traction over the past decade. According to the National Association of Realtors® 2024 Profile of Home Buyers and Sellers, 17% of home purchased last year were multi-generational households, the highest proportion since NAR began recording this figure in 2013.

Whether driven by economic factors, caregiving needs or cultural traditions, more families are choosing to live together. Our data shows that the top reasons for purchasing a multi-generational home were cost savings (36%), to take care of aging parents (25%), children over the age of 18 moving back home (21%), and children over the age of 18 never having left home (20%). Rising housing costs have made it harder for young adults to afford homes of their own, while retirees on fixed incomes may struggle to maintain independent housing; sharing a home can ease financial strain for everyone involved. By continuing to live in the home, young adults can save for a downpayment on their own home. Sixty-nine percent of all first-time home buyers used funds from their savings for the downpayment on their home. Simultaneously, with an aging population, many families are stepping in to provide care for elderly relatives.

Who is/are buying multi-generational home(s)?

More than half (58%) of 2024 multi-generational home buyers were married couples, and nearly one-fifth were single-females (19%). Across all racial and ethnic groups, married couples lead the way in multi-generational home buying, but there are differences across racial segments. Among Black/African American multi-generational home buyers, single females made up 36% of these home buyers, significantly higher than any other racial/ethnic group. Among Asian/Pacific Islander multi-generational home buyers, 12% were single males — higher than any other racial/ethnic group.

There is more racial and ethnic diversity among multi-generational home buyers compared to all home buyers. Seventy-three percent of multi-generational home buyers identified as White (compared to 83% of all buyers), 10% identified as Black/African American, 9% identified as Hispanic/Latino, and 8% identified as Asian/Pacific Islander.

Multi-generational home buyers have a median age of 57. While the majority — 77% — are aged 45 and above, younger buyers are also part of the mix, with 8% falling between 18 and 34 years old. Notably, 23% are aged 45 to 54, nearly 10 percentage points higher than the share among all home buyers, and 24% fall into the 55 to 64 age group.

The Sandwich Generation: Balancing care for two generations

Some multigenerational home buyers are a part of the Sandwich Generation — middle-aged adults juggling the care of both aging parents and their own children. These home buyers are facing increasing challenges as the longer lifespans and the rising financial dependency are added to their responsibilities. Multi-generational home buyers are more likely than the average buyer to have children under 18 living at home, with 37% reporting having at least one child under the age of 18 residing in the home. Among those who cite caring for aging parents as their primary reason for purchasing a multi-generational home, 29% also have children under 18 in the household. Financial pressures further compound these challenges, as 17% of multi-generational buyers carry student loan debt, with a median balance of $30,000.

Multi-generational living offers families financial and emotional support, stronger bonds, and shared caregiving responsibilities. However, it also requires navigating privacy, space, and interpersonal dynamics. As this trend continues to grow, it reflects on how families are adapting to modern economic and social realities while rediscovering the benefits of living together.

Whether for the holidays or year-round, multi-generational living demonstrates that home is more than just a house — it’s the people we share it with.

© 2024 National Association of Realtors® (NAR)