Family First: The Unstoppable Rise of Multigenerational Living as Cost of Living Soars

In an era where every penny counts, American families are getting creative – and closer – when it comes to homeownership. A compelling new trend is sweeping the nation: multigenerational homebuying has hit an all-time high, as families band together to combat the relentless climb of the cost of living.

New data from the National Association of Realtors® (NAR) reveals that multigenerational dwellings now account for a record-breaking 17% of all home purchases made last year. This isn't just a fleeting trend; it's a significant societal shift driven by both economic necessity and evolving family dynamics.

Who's Leading the Charge? The "Sandwich Generation" Steps Up

While various demographic groups are embracing this living arrangement, one stands out: Generation X (born between 1965 and 1980). Often dubbed the "sandwich generation" for simultaneously caring for aging parents and adult children, Gen X accounted for the largest share of homes bought with the intention of housing multiple generations of the same family.

According to NAR's 2025 Home Buyers and Sellers Generational Trends Report, 21% of Gen X buyers led the charge in multigenerational home purchases. They are followed by younger baby boomers (ages 60-69) at 15%, and older millennials (ages 35-44) at 12%. This represents a notable shift over the past decade, with Gen X's share increasing by nine percentage points since 2013, when they made up just 12% of this market. Older millennials also saw modest gains, from 9% in 2018 to 12% in 2025.

Conversely, younger baby boomers have seen their share of the multigenerational market noticeably shrink, from 22% in 2013 to 15% in 2025.

The Economic Imperative: Sharing the Financial Load

The driving force behind this surge is clear: cost savings. More than a third of homebuyers last year cited "cost savings" as their primary reason for choosing a multigenerational home, a dramatic jump from just 15% in 2015. With soaring mortgage interest rates and home prices making it increasingly difficult for many to afford a home on their own, pooling resources has become a practical solution.

"The cost of homeownership has climbed significantly over the last few years and, as a result, buyers have gotten creative," explains Realtor.com® senior economic research analyst Hannah Jones. "One way to offset high housing costs is by combining forces and buying with family."

Adult Children Staying (or Returning) Home

A key indicator of this economic strain is the growing number of adult children living with their parents. The NAR report found that 21% of respondents cited their children over the age of 18 moving back home as a reason for buying a multigenerational home, a stark increase from just 11% a decade ago. Even more striking, 20% of respondents shared that their grown children had never left home in the first place, up from a mere 7% in 2015.

"These shifts underscore the rising popularity of multigenerational living arrangements, driven by both economic factors and family dynamics," notes Amethyst Marroquin, research assistant for NAR. "Adult children may continue living at home seeking financial stability due to high living costs, student loan debt, and difficulties in finding well-paid jobs." This particularly impacts Gen X and boomer households, who are more likely to have adult children return home due to economic hardships. As Jones adds, "While younger buyers are still in the early stage of their career, having some help from their parents can be beneficial to boost savings and housing prospects down the line."

Caring for Aging Parents: A Heartfelt Motivation

Beyond financial considerations, a significant emotional component is also at play, especially for older millennials. Data indicates that they are increasingly purchasing multigenerational homes to move in with their aging parents. A substantial 35% of older millennials cited their aging parents' health and caretaking responsibilities as a reason for their decision. Additionally, nearly a third reported buying their homes to simply spend more quality time with their parents in their golden years.

As families continue to navigate economic uncertainties and evolving social landscapes, multigenerational living is poised to become an even more prominent and enduring feature of the U.S. housing market. It's a testament to the strength of family bonds and a practical solution to the challenges of modern living.