Multi-generational living is on the rise. 

According to the National Association of Realtors (NAR), 17% of homebuyers purchase a home to share with parents, adult children, or extended family.

That’s the highest share ever recorded by NAR (see graph below):

And what’s behind the increase? 

Affordability.

NAR explains:

“In 2024, a notable 36% of homebuyers cited “cost savings” as the primary reason for purchasing a multigenerational home—a significant increase from just 15% in 2015.”

In the past, caregiving was the leading motivator – especially for those looking to support aging parents.

And while that’s still important, affordability is now the #1 motivator.

And with current market conditions, that’s not really a surprise.

Pooling Resources Can Help Make Homeownership Possible

With today’s home prices and mortgage rates, it can be hard for people to afford a home on their own.

That’s why more families are teaming up and pooling their resources.

By combining incomes and sharing expenses like the mortgage, utility bills, and more, multi-generational living offers a way to overcome financial challenges that might otherwise put homeownership out of reach.

As Rick Sharga, Founder and CEO at CJ Patrick Company, explains:

“There are a few ways to improve affordability, at least marginally. . . purchase a property with a family member — there are a growing number of multi-generational households across the country today, and affordability is one of the reasons for this.”

But this strategy doesn’t just help with affordability.

It may even allow you to get a larger home than you’d qualify for on your own and that gives everyone a bit more breathing room.

As Chris Berk, VP of Mortgage Insights at Veterans United, explains:

“Multigenerational homes are more than a trend: They are a meaningful solution for families looking to care for one another while making the most of their homebuying power.”

And momentum may be growing.

Nearly 3 in 10 (28%) of homebuyers say they’re planning to purchase a multi-generational home.

Maybe it’s a solution that would make sense for you too.

The best way to find out?

Talk to a local real estate agent who can help you decide if this option would work for you.

Bottom Line

If your budget feels tight, buying a multi-generational home could be a smart solution. 

Would you ever consider buying a home with a family member?

Why or why not? 

Connect with an agent to talk through your options.