Trend Watch: The Rise of Multigenerational Housing in the U.S.

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In this report: an update on the multigenerational housing trend in the U.S., how builders are meeting the demand, and helpful tips for prospective home buyers.

A quiet transformation is reshaping the American housing market.

After decades of decline, multigenerational living (where parents, adult children, and grandparents share a home) is becoming increasingly common.

Once viewed as a temporary arrangement born from necessity, multigenerational homes are becoming a deliberate choice driven by a range of factors.

Five Things to Know About This Trend

Housing costs, childcare expenses, and eldercare needs are forcing many families to pool their resources under one roof.
Major builders now offer “multi-gen floor plans” with features like separate entrances, dual primary suites, and soundproofing.
Zoning reforms in states like California and Oregon are making accessory dwelling units legal, but permitting remains complex.
Successful multi-gen homes balance privacy and proximity through smart design choices like separate HVAC zones and accessible layouts.
The trend is reshaping who buys homes and how neighborhoods function, affecting everything from school enrollment to community makeup.

What You’ll Find in the Rest of This Report

Multigenerational housing defined
A growing trend in the United States
The main reasons for this trend
Who is buying multi-gen homes
How builders are responding to this trend
Zoning, permitting, and financing challenges
Tips for buyers considering multi-gen homes

What Is Multigenerational Housing?

At its simplest, multigenerational housing occurs when multiple adult generations of a family live under one roof or on the same property. But it can take several forms.

Fully Shared Homes: Some families share a traditional single-family home with common living spaces. This option maximizes cost savings but requires a lot of social coordination.
Dual Primary Suites: Other families opt for homes with dual primary suites, often called “next-gen” or “in-law” configurations. The suites might include a second master bedroom, kitchenette, and separate entrance within the main structure.
Accessory Dwelling Units (ADUs): Some families build or buy properties with ADUs, like detached cottages, converted garages, or basement apartments. This provides independence while maintaining proximity to family members.
Compound Models: Some affluent families are reviving the old “compound” model, purchasing adjacent lots or large parcels to build multiple structures.

These different arrangements all share something in common. They reject the traditional notion that everyone should strive to own their own home.

A Growing Trend in the U.S.

Multigenerational households rose substantially over the last decade. The 2020 Census counted roughly 6 million multigenerational family households, up from about 5.1 million in 2010. This reflects a clear upward trend that persisted through the 2010s.

Surveys and research show the main reasons people choose multigenerational living are practical: financial savings, caregiving (for older relatives or grandchildren), and cultural norms for some communities.

A recent Pew Research survey found that financial issues top the list for many adults who live in multigenerational households, with caregiving also high on the list.

Main Reasons for the Rise

Housing costs are the primary driver behind this growing trend, but not the only one. Here are some of the reasons why more families are choosing to live together:

Cost pressures. High housing costs, rising rents, and uneven wage growth can make shared housing expenses attractive or even necessary. Multigenerational buyers can pool their down payment and mortgage payment resources.
Caregiving needs. An aging population, along with growing needs for both eldercare and childcare, is pushing more families to share caregiving responsibilities under one roof.
Cultural norms. For many immigrant families within the U.S., multigenerational living is familiar and often preferred.
Lifestyle shifts. Remote work and flexible schedules make shared housing easier to manage. The pandemic spurred interest in flexible living arrangements that allow for caretaking and home offices.

When combined, these factors make an even stronger case for multigenerational living and housing arrangements. It can serve as both a short-term response to financial pressures and a long-term lifestyle option.

Who’s Buying Multi-Gen Homes?

Who is actually buying these homes? The data, while still emerging, points to a few key demographics:

Gen X Buyers (born 1965-1980): Gen Xers are in the sweet spot. They’re old enough to have aging parents who need support, young enough to still have kids at home, and financially established enough to afford a larger home. Many are also in their peak earning years.
Boomer Buyers: Another significant segment, boomers often purchase multi-gen homes proactively as they approach retirement. Often, the end goal is to eventually bring in a caregiver or have adult children who live close by.
Immigrant Families: Communities with strong multigenerational norms show disproportionate interest in this living arrangement, regardless of age.

According to a report from the National Association of Realtors: “21% of Gen X buyers led in the purchase of multigenerational homes, followed by younger baby boomers between ages of 60 and 69, at 15%; and older millennials between the ages of 35 and 44, at 12%.”

How Builders Are Responding

Homebuilders recognize the rising trend of multigenerational housing, and many have adjusted their product focus to meet that demand.

Here are some of the construction trends we could see more of in 2026:

New Product Lines and Floor Plans

In the U.S., major national builders commonly offer “multi-gen” floor plans as part of their standard catalog. They typically include a semi-detached suite with its own entrance, bedroom, bathroom, and kitchenette.

Lennar, one of the country’s largest builders, introduced its “Next Gen” suite option in 2014. By 2023, roughly 10% of their homes included the feature. In some markets that figure approached 20%.

KB Home, PulteGroup, and other major players have followed with similar offerings.

Design Details That Matter

Multi-gen homes go beyond adding extra square footage. They offer a range of features to support the independence of all occupants.

Common features of multi-gen homes in 2026:

Climate control: Separate HVAC zones so generations can control their own climate.
Soundproofing: Thicker insulation in walls, staggered studs, or double drywall between units.
Privacy considerations: Thoughtful placement of entrances and windows to create a sense of separation.
Plumbing: Extra capacity for second kitchens or the addition of future bathrooms.

Zoning, Permitting, and Financing Challenges

Multigenerational properties have become increasingly attractive to a lot of Americans. But they also present certain challenges for both buyers and builders.

Zoning Challenges

Zoning is one of the biggest obstacles.

Traditional single-family zoning in most American cities prohibits ADUs. Some cities also limit the occupancy rate by non-related adults, or impose setback and lot-coverage rules that make ADUs impractical.

But over the past decade, a wave of reform has occurred in high-cost markets:

California led the charge, essentially legalizing ADUs statewide in 2017 and strengthening those rules in subsequent years.
Oregon, Washington, and numerous individual cities—Minneapolis, Portland, Austin, Seattle—have followed with their own rules loosening.

The result is an explosion of ADU construction in these markets, with tens of thousands of units permitted annually in California alone.

Permitting Challenges

Even where ADUs are legal on paper, the permitting process can be complicated:

Some cities require separate utility meters, which can cost $15,000 or more.
Others demand new parking spaces even if the ADU occupant doesn’t drive.
Historic districts often ban exterior property alterations entirely.
Homeowners’ associations can override municipal rules with stricter ones.
Many cities still limit the number of unrelated adults who can share a home.

Enforcement of these rules can be spotty, but the legal gray area can confuse or dissuade families who might otherwise pursue multigenerational housing.

Financing Challenges

Financing presents its own set of challenges.

Mortgage underwriters are accustomed to standard floor plans with standard uses. A home with a semi-independent suite can trigger questions:

Will it be rented out for income purposes?
Should the potential rental income factor into mortgage qualification?
What if the layout makes the home harder to resell down the road?

Some lenders have adapted by offering “accessory dwelling unit mortgages” that recognize rental income potential. But not all lenders offer such products.

Appraisals are similarly fraught. In some markets, there might not be enough comparable sales to establish value for a highly customized multi-gen home. This might cause the appraiser to ignore or discount extra features that might otherwise add value.

Tips for Buyers Exploring This Option

The process of buying a multigenerational home can vary from one family to the next. But there are certain best practices that apply to nearly all scenarios.

Before You Start House Hunting:

Hold a family meeting to discuss expectations, finances, boundaries, and responsibilities. Determine your “why” for buying a multigenerational home and how each family member will benefit from it.
Draft a joint budget so you’ll know what you can afford to buy. Factor in the contributions from all household members who will be sharing costs.
Create written agreements about financial contributions, ownership structure, and responsibilities, even if everyone is family. This helps to prevent disputes later.
Consider working with a financial advisor or attorney to clarify ownership, expenses, and long-term plans before purchasing a multi-gen home.

Design and Layout Features to Prioritize:

Look for separate entrances or suites with doors that lock. This allows each generational unit to have their own space while staying close by.
Keep multigenerational suites on the first floor to avoid stairs, especially if aging parents will occupy the suite.
Seek homes with zero-step entries at key points, if applicable. This provides easy access for those using a stroller, wheelchair, or walking cane.
Look for wide doorways and hallways (at least 36 inches) that allow easy navigation for people with mobility challenges.
Prioritize homes with kitchens or kitchenettes for each generation, since cooking and food preferences can vary.
Choose homes with soundproofed walls and floors between living spaces, particularly separating bedrooms and bathrooms.

Financial and Legal Planning:

Compile essential legal documents including wills, trusts, powers of attorney, and healthcare directives to clarify asset distribution and end-of-life wishes.
Consider co-borrowing options that include multiple family members with stable income, as this can increase borrowing capacity.
Ask lenders about renovation loans if you’re considering modifying an existing home to add ADUs or convert spaces.
Work with an attorney or tax accountant to understand how shared ownership affects taxes, inheritance, and estate planning.

Zoning and Permitting Research:

Check with local jurisdictions and homeowner associations about restrictions on renting part of your home (if you think you might need that flexibility later).
Find out if your chosen neighborhood allows ADUs and what the permitting requirements involve, before committing to a property.
Determine parking requirements for your household, as some planned communities have strict rules about street or driveway parking.

Final Thoughts on This Trend

This rise of multigenerational housing in the U.S. isn’t entirely new. It’s a return to older, more globally common patterns of family life, updated with modern design and infrastructure.

For millions of families, the future of housing looks a lot like the past: generations living together and sharing space, pooling resources, and negotiating the joys and challenges brought on by proximity.

Builders, buyers, and communities that embrace this shift early will be better positioned for the decades ahead.