In the last few years, multi-generational homes – where adult siblings, adult children, and parents or grandparents live with the primary homeowner – have increased in popularity. According to a 2024 survey from the National Association of Realtors (NAR), 17% of homes purchased in 2024 were multi-generational, up from 11% in 2021.

The top reason behind the increase in multi-generational living, according to the NAR report, is cost savings. Challenging economic conditions can make it harder to buy and own a home, for both younger potential homebuyers who often carry student loan debt to older generations with a limited income.

“Rising housing costs have made it harder for young adults to afford homes of their own, while retirees on fixed incomes may struggle to maintain independent housing,” NAR writes. “Sharing a home can ease financial strain for everyone involved.”

Another common reason is caregiving. According to the NAR survey, 25 percent of respondents who reported buying a multi-generational home cited taking care of aging parents as their top reason. Assisted living facilities are getting more and more expensive, and so for some families, living together may be a more feasible option.

“With an aging population, many families are stepping in to provide care for elderly relatives,” NAR writes.

The Sandwich Generation

Multi-generational living can be especially challenging for the demographic known as the “Sandwich Generation” – middle-aged adults living with and caring for both aging parents and their own children. This is becoming a more common multi-generational household arrangement, according to NAR. Among those who cited caring for aging parents as their primary reason for purchasing a multi-generational home, 29 percent also had children under 18 in the household.

While having all three generations under one roof may be a practical living situation, members of the Sandwich Generation could find themselves navigating emotional, financial and caregiving burdens while juggling their own lives and careers.

“These home buyers are facing increasing challenges as the longer lifespans and the rising financial dependency are added to their responsibilities,” NAR writes.

Balance is Key for Multi-Generational Living

A multi-generational living arrangement could have clear benefits for families living together, but it likely would require effort from everyone involved to balance privacy needs and other personal issues.

“Multi-generational living offers families financial and emotional support, stronger bonds, and shared caregiving responsibilities. However, it also requires navigating privacy, space, and interpersonal dynamics,” NAR writes. “As this trend continues to grow, it reflects on how families are adapting to modern economic and social realities while rediscovering the benefits of living together.”