More and more families are choosing multi-generational living. The National Association of Realtors (NAR) reports that 17% of homebuyers are buying homes to live with parents, adult children, or other extended family members. This is the highest percentage NAR has ever recorded.

So, what’s driving the increase? It comes down to affordability. According to NAR, more people are finding homes within their budget, which is boosting demand and pushing prices up.

““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.”
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— NAR

In the past, taking care of aging parents was the main reason people were motivated to move or buy a home. While caregiving remains important, affordability has now taken the top spot as the key motivator. Given the current market conditions, this shift makes a lot of sense.

Pooling Resources Can Help Make Homeownership Possible

With the way home prices and mortgage rates are these days, buying a home solo can be tough. That’s why more families are joining forces and combining their resources to make it happen.

By pooling incomes and splitting costs like the mortgage, utility bills, and other expenses, multi-generational living provides a practical way to tackle financial hurdles that might make owning a home seem impossible. Rick Sharga, Founder and CEO of CJ Patrick Company, highlights this approach as an effective solution.

““There are a few ways to improve affordability, at least marginally. . . purchase a property with a family member — there are a growing number of multi-generational households across the country today, and affordability is one of the reasons for this.”
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— Rick Sharga, Founder and CEO at CJ Patrick Company

This approach doesn’t just make buying more affordable. It can actually help you qualify for a bigger home than you might be able to on your own, giving everyone a little extra space. As Chris Berk, VP of Mortgage Insights at Veterans United, points out:

““Multigenerational homes are more than a trend: They are a meaningful solution for families looking to care for one another while making the most of their homebuying power.”
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— Chris Berk, VP of Mortgage Insights at Veterans United

Momentum seems to be building, with almost 3 in 10 homebuyers—about 28%—planning to buy a multi-generational home.

Maybe this could be a good fit for you as well. The easiest way to find out is to chat with a local real estate agent who can help you figure out if this option is right for your situation.