Understanding the Multi-Generational Homebuyer

As homebuyers grapple with rising costs, the share of multi-generational households has reached an all-time high. According to the National Association of Realtors’ Profile of Homebuyers and Sellers Report, 17% of homes purchased last year were by multi-generational households. By generation, this breaks down to 21% of Generation X homebuyers, 15% of Baby Boomers, and 12% of Millennials.

Multi-generational homes are growing in popularity, but why?

Both financial pressures and changing family dynamics are influencing how today’s homebuyers shop. Many adult children are staying with their parents longer or returning home to manage rising living expenses or student debt. For many households, grandparents are also moving in with their own children to help manage the costs of childcare.

In 2024, 36% of homebuyers said their main motivation for purchasing a multi-generational home was to save money. Comparatively in 2015, just 15% of homebuyers cited this as their main reason for purchasing a multi-generational home. Another 21% of buyers in 2024 cited adult children moving back home as their main reason for choosing a multi-generational setup, compared with just 11% in 2015. Additionally, 20% of buyers said their adult children or relatives had never moved out, up from 7% in 2015.

Designing for multiple generations

• Multi-Gen Home Designs That Succeed in Meeting Multiple Needs: Understanding the rising trend in multi-generational living arrangements is key to understanding how to build homes that suit the needs of these households. Offering both privacy and communal spaces, these homes do just that.
• Housing Review: Multi-Generational Designs: These homes offer flexible designst that can be suitable for large, multi-generational households. 

• Make Way for Multigenerational Housing: These home designs make living with extended family easy. From added insulation to multi-generational living suites, these homes offer added privacy for large families.