A recent study by Veterans United Home Loans reveals a growing trend among homebuyers in the United States: multigenerational homes. More people are seeking multigenerational homes, which are properties designed or adapted to accommodate multiple generations under one roof. This shift reflects changing family dynamics, economic pressures, and a renewed appreciation for familial support networks.
More than a quarter (28 percent) of the 900 prospective homebuyers surveyed expressed interest in homes that could support multiple generations. Affordability was a notable factor, with 28 percent of those surveyed saying extended family members can help with household costs.
Beyond the financial component of multigenerational living is a personal aspect. About 29 percent of survey respondents said they’re planning to share their home with aging parents to provide care and support for them. Another 32 percent reported having adult children who can’t yet afford to live on their own.
According to the most recent National Association of Realtors’ Profile of Home Buyers and Sellers, about one in five homebuyers (17 percent) chose multigenerational homes in 2024 so they can care for aging relatives, accommodate adult children, or reduce costs.
U.S. Census Bureau data reflect these shifts as well. Data show that there were 6 million multigenerational households in 2020, an increase from 5.1 million 10 years prior. As of 2021, multigenerational households across the country accounted for nearly 60 million people, a number that has quadrupled since the 1970s, per the Pew Research Center.
For older adults considering joining or forming a multigenerational household, this trend offers both promising opportunities and important challenges to consider.
Benefits for Older Adults of Multigenerational Living
The benefits associated with multigenerational living include the following:
- Emotional Support and Companionship. Sharing a home with adult children and grandchildren can reduce loneliness and foster a greater sense of purpose and connection.
- Shared Expenses. By sharing expenses, such as utilities, property taxes, groceries, and other household costs, the whole household can save money.
- Safety and Caregiving. Younger family members can more easily monitor older adults’ health and provide immediate assistance, potentially preventing medical emergencies or hospitalizations. Families often rely on grandparents for child care and, in turn, adult children provide elder care for aging parents, creating a mutually beneficial arrangement.
- Increased Quality Time. Grandparents often enjoy closer relationships with grandchildren and can participate more actively in family life when they live in a multigenerational household.
- Decreased Mortality. Some studies have suggested that healthy people living in multigenerational households may also live longer.
Potential Challenges of Multigenerational Living
Though there are many benefits of multigenerational living, there are also potential challenges to consider, such as:
- Loss of Privacy and Independence. Sharing space can sometimes mean compromising on autonomy. Older adults may feel a lack of control over their routine or living environment.
- Home Design Limitations. Not all homes are suited for multigenerational needs, and modifications like accessible bathrooms, ramps, or private entrances can be costly.
- Family Tension and Role Conflicts. Generational differences in parenting, handling finances, or household responsibilities can cause stress and misunderstandings.
- Caregiver burnout. Though having family nearby can ease caregiving, it may also increase pressure on one or more household members, leading to physical and emotional fatigue. Consider how aging relatives’ health care needs may increase over time.
- Legal and Financial Complications. Without a well-documented plan concerning shared ownership, inheritance expectations, and responsibility for home maintenance, disputes could arise.
Tips for Multigenerational Living
Before packing boxes and renting a moving van, here are some tips to help create a smooth-functioning multigenerational household:
- Have Open Conversations. Discuss expectations, roles, and boundaries before moving in together.
- Create Private Spaces. Design or modify the home to ensure each generation has its own area to retreat to.
- Make Financial and Legal Plans. Consider working with a financial advisor or attorney to clarify ownership, expenses, and long-term plans.
- Respect Autonomy. Make sure older adults can maintain as much independence and control over their daily lives as possible.
Planning Ahead Is Key
As the housing market continues to present challenges for many Americans, multigenerational homes can offer a practical, emotionally rewarding solution for many families, particularly when approached with foresight and mutual respect. For older adults, it can mean aging in a supportive environment surrounded by loved ones, but only if the arrangement meets their needs as much as it does those of the family as a whole.
Older adults considering a move into a multigenerational home should have open conversations with family about expectations, finances, and boundaries. Do not hesitate to discuss everything from your expectations regarding daily routines and shared responsibilities to the need for privacy and long-term care considerations.
Older adults should also consult with an elder law attorney to understand how to protect their home from the cost of long-term care and integrate it into their overall estate planning. An elder law attorney can play a critical role in ensuring that estate planning documents, such as wills, trusts, and powers of attorney, are reviewed and updated to reflect the new living situation and to protect the older adults’ assets and wishes. This proactive approach to communication and professional consultation will significantly increase the likelihood of a successful and harmonious multigenerational living experience. With the cost of care, such as home care, assisted living, and nursing homes, continuing to increase, it is more important than ever to protect your home and other assets.
Contact an elder law attorney at Kurre Schneps to learn more about how multigenerational living could affect your long-term care planning and estate planning. They can discuss your unique situation and help you create the best strategy.
