Multigenerational homes: Benefits, costs, and key features

More American families are choosing to live together across generations. According to the U.S. Census Bureau, about 6 million U.S. households were multigenerational in 2020, up from 5.1 million in 2010. More recent 2024 American Community Survey data estimate roughly 5 million multigenerational households nationwide. Economic pressures, rising debt, and the need to support aging parents may be driving this shift. If you're considering this living arrangement, here's what you need to know about the pros, cons, and practicalities of shared housing.

Key takeaways:

• Multigenerational homes let multiple generations, such as parents and their adult children, live in one home.
• By pooling resources, people living in multigenerational homes may save money.
• Multigenerational homes are not right for everyone, so keep the potential drawbacks in mind before you commit.

What is a multigenerational home?

A multigenerational home can include grandparents, parents, and children. It can even extend to family members such as uncles, aunts, and cousins; and chosen family, such as close friends.

While the setup of a multigenerational home varies and depends on the needs and preferences of its inhabitants, common features can include shared common spaces with separate living quarters, separate entrances, or in-law suites, a freestanding accessory dwelling unit (ADU), or an add-on with private access.

Multigenerational living trends in the U.S.

These days it's more likely you'll find adult children sharing a roof with their parents. Some parents invest in helping their kids buy a home. Or you might find middle-aged adults cohabiting with their parents to care for them or grandparents who help with tending to the little ones in the family.

More folks are turning to multigenerational arrangements due to high housing costs, a surge in demand for care for the aging, and evolving cultural norms. Sometimes friends in the same generation team up to buy a house. Other home buyers decide house hacking is for them and they rent out part of their property. Buyers who want to buy a property with multiple units on it can finance it with an FHA multifamily loan or other types of home loans.

As you research this style of living, you will find there are many different types of houses which may work for your plans. A mixed-use property may provide what you need.

Let's take a deeper look at some of the more current statistics surrounding multigenerational living in the country:

• According to the National Association of REALTORS^® (NAR), 14% of home buyers bought a multigenerational home in 2025.
• Per NAR, 21% of these households exist because their adult children (age 18+) are moving back home, and an additional 20% never left home.
• The number of people living in multigenerational homes as of 2021 more than quadrupled from 50 years ago (1971), per Pew Research.
• As of 2021, 18% of people live in a multigenerational home, more than double from 50 years ago, per Pew.
• Among young adults ages 25 to 29, a third (31%) live in multigenerational households, usually in their parents' home.
• Nearly four in 10 (37%) of young adult men ages 25 to 29 live with their adult relatives, as do 26% of women of the same age.
• Black, Hispanic, and Asian families are more likely to live with several generations under one roof.
• Because of pooled resources, there's a greater safety net should a member of a multigenerational household face financial strain.

Pros and cons of multigenerational homes

There are a lot of advantages that come with multigenerational living but also some drawbacks to keep in mind. Let's look at some of them:

Financial benefits

Cost savings are a major perk of having multiple generations living under one roof.

By pooling financial resources, families can shave off dollars on the cost of housing and shared living expenses such as utility bills and groceries, which can be especially helpful for elderly parents and young adults. And should someone face financial hardship, this arrangement can help soften the blow.

If you’re not sure how much you can spend on a house, you can use our home affordability calculator to estimate your budget.

For example, the average mortgage payment for those who moved in 2024 was $2,225. If a couple lives in a single-family home, that would be $1,112.50 per month per person. In a multi-generational home, adding one parent would cut that cost to $741.67 per person, a significant savings. You’d see similar savings on costs like utilities, internet subscriptions, and more.

This arrangement can help older folks avoid long-term facility or assisted living costs. In fact, according to the Federal Long Term Care Insurance Program, the average cost of a semi-private room in a nursing home is $112,420 a year.

Multigenerational living can also help with the hefty price of childcare. According to the Economic Policy Institute, the average cost of childcare for a 4-year-old in California is $13,020 a year and $9,548 in Florida.

Emotional and social benefits

Beyond the financial considerations, there are emotional and social benefits of multigenerational living.

Having grandparents and their grandkids under the same roof can mean enhanced bonds and social connection between family members. There can also be positive impacts on mental health and overall social well-being.

A family meal or bonding activities can mean decreased loneliness among older household members. It can also foster the passing on of family legacies and traditions.

Caregiving benefits

Multigenerational living can also mean built-in caregiving. In the U.S., 25% of adults are caregivers. Further, 29% of members of the sandwich generation are caregivers and provide support for both aging parents and their children.

Instead of shuttling back and forth between separate homes, adults can care for their elderly parents or other relatives. In turn, it allows for older generations to age in place in the comfort of their homes.

Challenges to consider

Multigenerational living can also come with a handful of hurdles:

• Lack of privacy/living in close quarters. Having multiple generations under one roof can mean a loss of alone time. It also means residing near one another. This can lead to an increase in stress.
• Lifestyle differences. Imagine working from home while a toddler is banging on a toy drum set in the yard or while an elderly parent is blasting the television. These differences in lifestyle or activities throughout the day can mean growing tension.
• Financial disagreements. Arguments can arise over how household expenses are shared. This can come up should there be a discrepancy in income, caregiving responsibilities, and household chores.
• Increased caregiving stress. In-home care means it may be harder to take a break should you face burnout, especially if you're caring for both elderly parents and children.

How much does a multigenerational home cost?

If you’re thinking about buying a multigenerational home, it’s natural to wonder about the cost. The truth is that multigenerational homes are more expensive than typical single-family homes.

Depending on where you live, the layout of the home, and other factors, you can expect a significantly higher upfront purchase price and an elevated cost per square foot. However, that major initial expense may be worth paying thanks to the substantial long-term savings achieved by pooling household incomes, splitting monthly bills, and eliminating external child or elder care costs.

Shared housing costs

One thing that can help offset the higher cost of a multigenerational home is that housing costs will be shared between more people.

In the second quarter of 2026, the median home sold for $410,700, and the average 30-year mortgage rate was 6.69%. Assuming a 10% down payment, if you want to buy the median home, you’d borrow $369,630 at a rate of 6.69% and pay $2,382.69 per month for your mortgage. Split between two members of a couple, that comes to $1,191.34 per person.

Now, imagine a multigenerational home. Add a $100,000 premium over the median home, and you arrive at a purchase price of $510,700. With a 10% down payment, which would cost $10,000 more than the down payment on the median single-family home, you’d borrow $459,630 at a rate of 6.69%, resulting in a payment of $2,962.84, an increase of just over $580 per month.

However, if one member of the couple has a single parent living in the home with them, that means the payment would be split three ways, resulting in a cost of $987.61 per person, just over $200 less per person.

Even with an imbalanced split to account for the lower income of retirees, a younger couple could see savings by buying a multigenerational home. This also doesn’t account for the savings by splitting utility and internet bills, buying food and other items in bulk, and other opportunities to pool expenses.

Childcare and senior living savings

Another consideration is the amount of money that you could save on childcare or for senior living.

Many grandparents can take care of their grandchildren while their children go to work, letting their children avoid the high cost of nannies, preschool, or daycare. With the national average price of daycare rising above $13,000 per year, eliminating childcare expenses alone could make up for the higher cost of a multigenerational home.

On the other end of the spectrum, living with their children can help seniors delay having to move into assisted living facilities. Assisted living costs an average of $74,400 per year, making multigenerational homes an opportunity for huge savings.

Multigenerational home floor plans and layout options

There are many ways to lay out a multigenerational home, each with pros and cons to consider.

In-law suites and ADUs

An in-law suite or accessory dwelling unit (ADU) is a small living space that is located on the same piece of property as a single-family home. These can either be separate structures on the same plot or connected to the primary home.

Usually, in-law suites lack all the features of a single-family home. Some may simply be a single bedroom and bathroom, while others may include a small kitchen or living room.

ADUs are often added to an existing property, such as by converting a garage or cottage or building a new structure somewhere on the plot.

In-law suites offer a solid amount of functionality and privacy, especially if they are separate buildings from the main home. They also offer a lot of flexibility, serving as a place for relatives to live, a guest home, or a unit that you can rent for extra income if it isn’t otherwise in use.

Private suites

A private suite is very similar to an in-law suite except it includes private living areas, including bathrooms, bedrooms, and living rooms, so that the residents of the primary home and the private suite have their own living spaces.

This contributes to a greater feeling of privacy, as the residents of the private suite will not need to enter the primary home to access important amenities.

Dual kitchens or kitchenettes

One feature to keep an eye out for when considering a multigenerational home is whether the home includes a dual kitchen or kitchenette.

If there is only one kitchen, each family unit will need to agree on mealtimes and may get in each other’s way if they want to prepare different foods or meals. Having separate kitchens or a kitchenette for an in-law suite lets each family unit maintain their own schedule without interfering with one another.

Separate entrances

Another important feature for multigenerational homes is that each family unit should have a separate entrance. For example, having a side door or garage access for the in-law suite means that residents of each unit can come and go as they please.

If there’s only one way in or out of the home, everyone will need to use the same entrance, which can cause distractions or loss of privacy. This is something to consider if you want to create a multifamily home. You may also want to decide if it makes sense to renovate a home so it works for multigenerational living.

Universal design for aging in place

If the point of having a multigenerational home is to live with aging relatives, considering designs that ease aging in place is important.

For example, it can be difficult for older people to navigate stairs, so making sure that an in-law suite or ADU is only one floor can be helpful. Other design considerations, such as grab bars or wider doorways, can improve accessibility for the mobility impaired.

Flexible-use rooms

If you want to remodel an existing home into a multigenerational one, looking at flexible spaces is important. For example, you can remodel a basement or attic into an ADU that someone could live in, often for much cheaper than it would cost to build an entirely new structure.

What to know before buying a home with family

Buying a home is a big commitment. Doing so with family members is an even bigger one because you’re tying your future living situation and finances to those of the family members  you’re buying a home with.

Before you buy, it’s important to sit down with everyone who will be part of the purchase to discuss things like who will contribute to the purchase, how to split expenses, and what your long-term goals for the home are.

Decide who contributes to the purchase

The first thing to discuss is who will contribute to the purchase. Buying a home comes with a lot of upfront costs, including the down payment, closing costs and fees, cost of moving, and more.

Knowing who will contribute to each expense and how much they’ll contribute can reduce surprises and bad feelings down the road.

Set a budget and home priorities

Next, discuss the shared budget and priorities for the home. One of the major benefits of multigenerational living is that you can save money by splitting expenses such as utility bills or by buying staple goods in bulk.

Work together to come up with a budget that you’ll all stick to when shopping for shared expenses.

Understand financing, down payments, and local laws

Another thing to discuss before buying a multigenerational home is how you plan to finance the home. Few people can afford to buy a home outright with cash. Instead, they use a mortgage to afford the purchase.

Most mortgage lenders let as many as four people be on the loan, so the simplest option may be to put every adult who plans to live in the home on the loan. This also lets you benefit from a higher income and potentially stronger credit profile during underwriting, which could make it easier to qualify for a better loan.

Also investigate local building codes and laws. Some areas have limitations on building ADUs or other building codes that could impact your plans if you hope to remodel a home for multigenerational living.

Discuss shared bills, long-term goals, and an exit strategy

Before you buy, talk about how shared bills, like electricity and water bills, will be handled.

Also plan to cover long-term goals for the home and an exit strategy. For example, if you’re living with older family members, talk with them to find out if they want to live in the home for the rest of their lives. If that isn’t possible, do they hope to sell the home to help fund assisted living and end-of-life care? If the younger members of the family get a new job opportunity somewhere else, would they want to sell the home to move?

These kinds of discussions can be difficult to have, but they’re important to make sure that everyone is on the same page.                              

FAQ

Before buying a multigenerational home, keep these frequently asked questions in mind.

Are multigenerational homes a good idea?

Multigenerational living may be a good idea, but it depends on your family dynamics and goals. Buying a multigenerational home means you may have fewer options of what property to buy, and you may give up some privacy, but you can save significant amounts in housing costs, nursing home stays, and childcare.

Is 70 years old too old to buy a house?

70 years old isn’t necessarily too old to buy a home, but you need to consider the property’s accessibility to make sure you can continue living in it as you age. A multigenerational home can be a good purchase at this age if you have younger family who may want to live with you.

How much is a multigenerational home?

Multigenerational homes may cost more than single-family properties. The price may be 65% more than the price of a traditional family home.

Can you rent a multigenerational home?

Yes, you can rent a multigenerational home just as you can rent any other property. However, you may have to work harder to find good options available for rent because inventory tends to be lower for multigenerational properties than others.

How do you find multigenerational homes near you?

You can find multigenerational properties using online search engines or by working with realtors who are familiar with your local market. They can point you to good opportunities to buy homes that are compatible with multigenerational living.

The bottom line: Is a multigenerational home right for you?

Multigenerational homes are gaining traction due to our economy, cost concerns, and the increase in need for caring for aging populations.

And while there can be financial, social, and emotional advantages to multigenerational living, it's important to weigh the pros and cons to figure out if such a living arrangement is a good fit for you. Spend time looking at different options to determine what might be the right choice for you and your family.

If you're ready to start your search for a multigenerational home, you can start the mortgage application process with Rocket Mortgage.