Why are Multigenerational Home Purchases on the rise in 2024?
The real estate market in 2024 has seen a significant shift with multigenerational homes becoming more popular than ever. In fact, 17% of all home purchases this year have been for multigenerational living—a record high since data collection began in 2013. So, what’s driving this trend? Let’s dive into the reasons behind this surge and the benefits of multigenerational living.
Why Are More Families Choosing Multigenerational Homes?
According to the National Association of Realtors (NAR), there are several key reasons why buyers are opting for multigenerational homes. With home prices soaring, pooling financial resources makes homeownership more affordable. Cost saving is the number one reason, but not the only reason.
Caring for Aging Parents is another reason people favor multi-generational homes. Many families are choosing to keep their elderly loved ones close rather than opting for assisted living facilities. Adult children are also moving back home because the rising cost of living makes it difficult for young adults to afford their own place. Many adult children never leave home in the first place.
So who are the buyers? The majority of multigenerational homebuyers in 2024 are married couples, making up 58% of purchases. Interestingly, nearly one-fifth (19%) of these buyers are single women. While married couples lead the trend across all racial and ethnic groups, there are notable differences in how different communities approach multigenerational living.
For many, the decision to buy a multigenerational home is primarily financial. Sharing housing expenses among multiple adults allows families to reduce their overall cost of living. This setup can also increase purchasing power, enabling buyers to afford larger or more well-suited homes than they could on their own.
Another financial perk is the ability to combine incomes, making mortgage payments more manageable. And for those with accessory dwelling units (ADUs) or in-law suites, there’s even an opportunity to generate extra income by renting out part of the home.
If the events of 2020 taught us anything, it’s that family connections matter. Many people experienced heartbreaking separations from loved ones during lockdowns, particularly those with elderly relatives in care facilities. A multigenerational home allows older adults to age in a familiar environment while staying close to family, ensuring they receive the love and support they need.
Beyond caregiving, living together fosters stronger family bonds, allowing generations to share traditions, create lasting memories, and provide built-in support systems. Grandparents can help with childcare, parents can support their aging relatives, and young adults can learn valuable financial and life skills before venturing out on their own.
After working with several builders and architects in our area, it’s clear that the industry is adapting to this growing trend. Many new homes are being designed with future multigenerational needs in mind. Some of the most common features include separate living quarters with independent entrance areas on lower or upper floors, complete with their own kitchen and bathroom, allowing for semi-independent living. This has led to an increase in Accessory Dwelling Units (ADUs) These detached units provide separate living spaces while keeping family members close. These units can also serve as rental properties, helping homeowners offset mortgage costs. Flexible floor plans are another common feature, offering convertible spaces that can easily transition to accommodate different family needs over time.
The increase in multigenerational home purchases in 2024 isn’t just a trend—it’s a reflection of changing economic realities and shifting family dynamics. Whether it’s for financial reasons, caregiving, or simply the desire to stay close, more families are realizing the benefits of living together under one roof. With builders and architects embracing these changes, we’re likely to see even more innovative housing solutions in the years to come.
If you’re considering a multigenerational home, now might be the perfect time to explore your options. Whether you're looking to save money, care for loved ones, or strengthen family ties, this lifestyle offers a wealth of benefits that can make homeownership more rewarding than ever.