Key takeaways

• Multigenerational households made up 17% of home purchases in 2024

• 50% of Gen X caregivers are also raising kids, and 56% financially support parents, children, or both

• Saving money is the top reason for 36% of those buying multigenerational homes

• 1 in 4 buyers say caring for aging relatives influenced their housing choice

• Nearly one-third of adults ages 18–34 live with family

Some Americans are changing the way they think about home life: As home-buying costs climb and caregiving demands rise, multigenerational living is shifting from a niche solution to a mainstream strategy for more households.

Multigenerational homes — households that include three or more generations, typically children, parents, and grandparents — represented 17% of housing purchases in 2024 — a record number for the segment.¹ One in five (21%) of Gen X buyers and 12% of older millennials bought such homes in 2025.² According to the latest U.S. Census data, about six million U.S. households, representing about 7.2% of family and 4.7% of overall households, are multigenerational.³

Factors at play

Half of Gen Xers who care for their parents also have a child under the age of 18, and 56% financially support either their parents or their kids, or both. And longer life expectancies could mean more families could be navigating elder care for extended periods of time — often without the safety net of affordable long-term care. Couple that with the fact that 75% of people aged 50 and older would prefer to stay in their homes as they age.

Living expenses and an uncertain job market are prompting many Gen Zers to boomerang  back home too, adding to the mix. Almost one third of adults aged 18-34 live at home, with that number surging more than 87% in the past two decades.

Costs are a catalyst

For some adopters of the three-generation household model, it’s become a strategic, emotionally rich housing choice. More than one in three (36%) of homebuyers cite “cost savings” as the primary reason for bringing all three generations under one roof.⁴

Elevated home costs are part of the story shaping decisions. Though buyers may have gained some leverage in certain markets, housing affordability is strained as prices have continued to climb, reaching record highs. Multigenerational living can offer a practical solution to help would-be homeowners optimize their buying power.

Caregiving needs and expenses are also major drivers. Roughly one quarter of Americans now make up the “sandwich generation” — adults who may be responsible for supporting both their aging parents and their children financially, physically, or emotionally.

Read more: Gen X strikes a balance between retirement and caring for aging parents

Everybody wins

Living in the same household may reduce both caregiving costs and ease emotional strain. One quarter (25%) of multigenerational home buyers say caring for aging relatives is a primary factor.⁵ The solution can potentially simplify everything from transportation to medical oversight for aging parents — and at the same time help preserve independence for the older adults.⁶

Proximity can benefit younger generations too. In some major cities, childcare is the single most significant daily expense for working parents. Live-in grandparents may be able to provide childcare support and help families reduce the cost of daycare while strengthening family bonds — an increasingly valuable tradeoff.

And three generations doesn’t have to be a crowd. As demand grows for homes that can comfortably accommodate the needs of extended families, some architects and builders are responding. Increasingly, homes are featuring flexible designs like accessible features in bathrooms, multi-purpose areas on main floors that can be converted to bedrooms and bathrooms as needs evolve, and other innovations.⁷ Ranch homes have become the leading architectural home design, with 21% of people 55 and older identifying single-level residences as “dream homes.”⁸

Read more: Home sweet home: A majority of Americans want to age in place

A saving strategy

Multigenerational living can translate to a triple win for some: A mix of cost-sharing, built-in child or elder care, and the potential for deeper family connections. The choice potentially can have an added benefit: With many Gen Xers in their peak earning years, pooling expenses can free up cash to put toward building a financial nest egg for retirement.

Read more: They’re back: Gen Z are the new boomerang generation