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Multigenerational Living Gains Ground Among Homebuyers

Apr 24, 2025
The multifamily lending sector ended 2016 on an eight percent year-over-year increase

28% of prospective buyers plan to include multiple generations under one roof, Veterans United survey finds

As affordability challenges and caregiving responsibilities reshape the housing landscape, more American homebuyers are prioritizing multigenerational living, according to a new survey from Veterans United Home Loans.

The survey, which polled 900 prospective buyers nationwide, reveals that 28% plan to purchase homes designed for multiple generations. This marks a significant rise in demand for living spaces that can accommodate extended families, driven by both emotional and financial motivations.

Caregiving and Cost-Sharing Drive Demand

The primary catalyst behind this trend is the need to care for aging parents, cited by 29% of respondents. But the motivations extend beyond caregiving. 21% of respondents said that extended family members help with household expenses, while 27% noted that grandparents contribute financially, often enabling the family to live in a specific area or afford better housing.

“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,” said Chris Birk, vice president of mortgage insight at Veterans United.

Additional data from the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers supports this shift: 17% of recent homebuyers purchased multigenerational homes in the past year. Among them, 36% cited cost savings as the primary motivation, followed by caregiving (25%) and the return of adult children to the home (21%).

Shared Living Is Already Familiar for Many

Veterans United found that 30% of respondents have always lived with family in some form, and one-third said shared living arrangements would help with childcare. Financial pressure also plays a role: 32% of respondents said their adult children can’t afford to live independently, and 28% mentioned that pooling household finances helps with expenses.

Not all multigenerational households function the same way. Some are fully cohabiting, while others take a hybrid approach. 23% of buyers said grandparents would live in the home only part-time.

Age, Culture, and Income Shape the Multigenerational Buyer

The survey also reveals stark generational differences. 36% of Gen X buyers plan for multigenerational homes — the highest among age groups — followed by 28% of Millennials. For these buyers, motivations vary: Gen X and Baby Boomers are more likely to house adult children, while younger buyers — 44% of Gen Z respondents — cite financial support as a key reason for living with family.

Part-time cohabitation is also more common among younger buyers, with 29% of Gen Z and 31% of Millennials expecting family members to reside with them part of the year.

Cultural factors further influence this trend. According to NAR data, 26% of Asian and Pacific Islander buyers, 22% of Hispanic and Latino buyers, and 22% of Black and African American buyers purchased multigenerational homes, often for caregiving or to accommodate adult children.

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