Financial stress is driving a significant increase in multigenerational living across the United States, as more families choose to share homes to alleviate individual housing costs. A new study from Realtor.com reveals that the number of multigenerational households has grown by 700,000 over the past decade, reaching 4 million. This arrangement, typically involving parents, children, and grandparents under one roof, accounted for 4.5 percent of the housing market in 2024, up from 4.3 percent in 2019. In the nation's 50 largest cities, this share averaged 6.1 percent.
Drivers of the Trend
Hannah Jones, Senior Economic Research Analyst at Realtor.com, noted, "Multigenerational living is a meaningful force in the housing market. A sense of shared purpose and care is at the heart of multigenerational living, a housing arrangement that is quietly shaping American family life." The trend is largely fueled by the double burden of high home prices and elevated mortgage rates. From January to March, the average sale price of a listed home was $514,600, according to the Federal Reserve, remaining near record highs. Meanwhile, mortgage rates for a 30-year fixed-rate loan have stayed above 6 percent since September 2022, after 14 years below that threshold.
Regional Highlights
California cities lead the nation in multigenerational home listings. Los Angeles tops the list with a 23.7 percent share, followed by San Diego (22.7 percent), San Jose (18 percent), San Francisco (17.4 percent), and Riverside (14.9 percent). The state's high rates are attributed to its cultural diversity, particularly among Asian and Hispanic populations, who often embrace multigenerational living. The study identifies multigenerational homes through keywords in property listings rather than occupant ages.
While the West Coast dominates in share, the Midwest sees the highest price premiums for such homes. In Detroit, buyers pay a 120 percent premium for a multigenerational house, while Cleveland and Buffalo see premiums of 107 percent and 94 percent, respectively.
The shift underscores a broader trend: living alone has become a luxury many Americans can no longer afford. As financial pressures persist, multigenerational living offers a practical solution, combining cost savings with shared family support.
