Multi-Generational Homebuying Hit a Record High Heres Why

Multi-generational living is on the rise. According to the National Association of Realtors (NAR), 17% of homebuyers purchase a home to share with parents, adult children, or extended family. Thats the highest share ever recorded by NAR (see graph below):

And whats behind the increase? Affordability. NAR explains:

In 2024, a notable 36% of homebuyers cited cost savings as the primary reason for purchasing a multigenerational homea significant increase from just 15% in 2015.

In the past, caregiving was the leading motivator especially for those looking to support aging parents. And while thats still important, affordability is now the #1 motivator. And with current market conditions, thats not really a surprise.

Pooling Resources Can Help Make Homeownership Possible

With todays home prices and mortgage rates, it can be hard for people to afford a home on their own. Thats why more families are teaming up and pooling their resources.

By combining incomes and sharing expenses like the mortgage, utility bills, and more, multi-generational living offers a way to overcome financial challenges that might otherwise put homeownership out of reach. As Rick Sharga, Founder and CEO at CJ Patrick Company, explains:

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.

But this strategy doesnt just help with affordability. It may even allow you to get a larger home than youd qualify for on your own and that gives everyone a bit more breathing room. As Chris Berk, VP of Mortgage Insights at Veterans United, explains:

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.

And momentum may be growing. Nearly 3 in 10 (28%) of homebuyers say theyre planning to purchase a multi-generational home.

Maybe its a solution that would make sense for you too. The best way to find out? Talk to a local real estate agent who can help you decide if this option would work for you.

Bottom Line

If your budget feels tight, buying a multi-generational home could be a smart solution. 

Would you ever consider buying a home with a family member? Why or why not? 

Connect with an agent to talk through your options.