Multi-Generational Households Are Growing—But Why?

Household dynamics have changed in recent years. From young adults returning to their parents’ homes to older parents moving in with their adult children, multi-generational living is becoming increasingly common. A new report from the National Association of Realtors shows that 14% of homebuyers in 2025 purchased a home designed to house multiple generations, but the reasons vary widely depending on the family.

The most popular reason for purchasing a multi-generational home is to care for aging parents

Among recent buyers, 41% said their top motivation for choosing a multi-generational home was to care for their aging parents. This figure represents the highest percentage recorded since tracking began in 2015. Additionally, 23% of recent buyers said their main reason for buying a multi-generational home was to simply spend more time with their aging parents.

Young adults are also moving back in with their parents

For both practical and financial reasons, young adults are also choosing to move back in with their parents. In 2025, 27% of buyers who chose multi-generational living said the main driver was adult children moving back in with them, and another 21% reported that their adult children had never moved out in the first place.

Finances are a major factor in purchasing multi-generational homes

For some families, the main perk of multi-generational living is splitting monthly housing costs. More than a quarter of multi-generational buyers in 2025 said that they purchased a home that had three or more household members contributing to the income, compared with only 11% of traditional buyers.

Still, these families aren’t necessarily saving more. In 2024, the median household income for all buyers was $109,000, while multi-generational buyers reported a nearly identical combined median income of $109,300.

A need for childcare also drives multi-generational home purchases

With childcare costs rising, many families are relying on extended family to help with their young children. According to the report, 34% of multi-generational buyers had children under the age of 18 at home. With that in mind, 12% of recent buyers cited buying a multi-generational home because of grandchildren living in the household, and 6% said they had relatives move in to help them with childcare.