More families are choosing multigenerational living to save money as financial pressures mount across the United States. The number of multigenerational homes has increased by 700,000 over the past decade, reaching 4 million households, according to a new study from Realtor.com.
Rising Trend in Multigenerational Housing
A multigenerational home typically includes parents, children, and grandparents living under one roof. This arrangement now accounts for 4.5 percent of the housing market in 2024, up from 4.3 percent in 2019. In the 50 largest US cities, the share averages 6.1 percent.
“Multigenerational living is a meaningful force in the housing market,” said Hannah Jones, Senior Economic Research Analyst at Realtor.com. “A sense of shared purpose and care is at the heart of multigenerational living, a housing arrangement that is quietly shaping American family life.”
California Leads in Multigenerational Homes
California cities dominate listings for multigenerational properties. Los Angeles has the highest share at 23.7 percent, followed by San Diego (22.7 percent), San Jose (18 percent), San Francisco (17.4 percent), and Riverside (14.9 percent). The state’s cultural diversity, particularly among Asian and Hispanic populations, contributes to this trend. The study identifies multigenerational homes through keywords in property listings rather than occupant ages.
Midwest Sees Highest Premiums
While the West Coast has the most listings, the Midwest commands the highest price premiums for multigenerational homes. Buyers in Detroit pay a 120 percent premium, while Cleveland and Buffalo see premiums of 107 percent and 94 percent, respectively.
Financial Pressures Drive Shift
The move toward multigenerational living reflects ongoing financial challenges. Average home sale prices were $514,600 from January to March, near record highs. Mortgage rates for 30-year fixed loans have remained above 6 percent since September 2022, ending a 14-year period of lower rates. Living alone has become a luxury many Americans cannot afford.
