Multigenerational and co-buying households are right at home in the U.S.

Considerations for multigenerational housing

There are plenty of reasons why families choose to live in multigenerational households, which are generally defined as 3 or more generations living together. Here are some of the more typical ones:

Housing costs and affordability – According to the National Association of Realtors^® (NAR), the median sales price of an existing home in 2026 was $440,600², which is $93,700 more than it was in 2021 ($346,900)³. That’s a 27% increase in 5 years! It goes without saying that this has created a financial challenge for buyers who haven’t seen corresponding wage increases. Sharing costs in a multigenerational household makes buying and living in a home much more affordable – even if only some of the inhabitants are actual owners of the home
Caregiving for aging parents – Nursing homes and assisted living housing are extremely expensive, so many families decide to provide their own care for their aging loved ones
Cost savings – 37% of first-time homebuyers have student loan debt.⁴ Moving in with family can allow them to stretch their budgets to pay off debt and other priorities. Plus, sharing expenses has obvious financial benefits for all family members involved
Childcare – Having another generation care for children not only saves money, but it also allows young parents to focus on their careers knowing they have reliable and loving childcare – to say nothing of the benefit of creating stronger bonds between the generations

Multigenerational housing options

As the number of Americans living in multigenerational homes has grown, so have the types of dwellings. Besides having a family member just move into the extra bedroom of a traditional single-family home or remodeling to add an in-law suite, homes are being built specifically for multigenerational living. These custom homes are designed to offer both open-concept shared areas as well as privacy features, like separate entrances, multiple ensuite bathrooms, kitchenettes, and smaller dual-purpose rooms that can be used for reading, yoga or just being alone.

Another hot option for multigenerational living is an accessory dwelling unit (ADU), which is a small, affordable, self-contained living space situated on the property of a single-family residence. Although zoning in some areas restricts them, ADUs can be ideal for aging parents because they allow families to be close enough for caregiving while maintaining privacy and independence.

A new shared-living trend: Co-buying

Increases in home prices coupled with sticky inflation have created a new category of homebuyers: co-buyers. These types of homebuyers combat affordability challenges by pooling their resources to purchase a home with a non-romantic partner, such as a friend, sibling or other partner.

According to NAR, about 60% of renters say they would consider co-buying with friends.⁵ Gen Zers are the most willing to co-buy a personal residence (70%), with older generations most interested in co-buying investment properties.⁶

Whether COVID made the idea of living together more acceptable, or affordability challenges have made it more necessary, co-buying is a growing trend and has even led to the creation of new housing technology platforms that help co-buyers navigate the financial and legal complexities of shared ownership.

Affording a larger space

Whether buying with multiple generations or as co-buyers, shared living can require a larger home to accommodate more living spaces. Sharing costs hopefully means you have a larger budget to work with – but don't assume the sky's the limit. Make sure you're on the same page in terms of a blended household budget, and especially if you're a first-time homebuyer, keep in mind that there are expected and unexpected expenses to budget for as a homeowner. Even with a combined budget, you may still want or need to take advantage of options that can help you make a smaller down payment, like mortgage insurance.

Is a shared-living household for you?

Perhaps you have kids still living at home and parents who need extra help. Or maybe you'd like to become a homeowner, but your budget won't stretch quite far enough on your own.

The decision to live with multiple generations of your family or as a co-owner is highly personalized. And the ability to do it successfully probably depends on several factors: good communication, a sense of humor, respect, and agreed-upon boundaries (legal contracts if you are co-buying!) and responsibilities.

Not to mention, enough bathrooms and TVs to avoid fights!