More Americans Live With Family as Housing Costs Soar, Boomers Age – Image for illustrative purposes only (Image credits: Pexels)
In Somerville, Massachusetts, a real estate agent recently guided a couple in their 70s through the purchase of a two-family home. The grandparents settled into the first floor, steps away from their daughter, son-in-law, and two young grandchildren upstairs. This setup allows for seamless childcare and mutual support, a practical response to both financial pressures and family needs.[1]
A Notable Uptick in Shared Households
Multigenerational living arrangements have gained traction across the United States. A recent analysis identified about 4 million such owner-occupied households in 2024, accounting for 4.5 percent of the total. That marked a slight increase from 4.3 percent in 2019, before the pandemic reshaped daily life.[1]
National Association of Realtors data showed even stronger momentum in home purchases. In 2024, 17 percent of buyers acquired properties intended for multiple generations under one roof. This figure highlighted a decade-long pattern, with Generation X buyers leading at 21 percent, followed by younger baby boomers at 15 percent and older millennials at 12 percent.[2]
Historical context underscores the shift. The portion of the population in multigenerational households climbed from 7 percent in 1971 to 18 percent by 2021, according to Pew Research Center findings. Nearly 60 million Americans resided in these setups by early 2021, a quadrupling over five decades.[3]
What Fuels the Move to Combined Roofs
Skyrocketing housing expenses stand out as a primary catalyst. Median list prices for multigenerational properties reached $709,000 in 2025, 65 percent above the $429,900 for typical homes. Buyers often seek these despite the premium, drawn by long-term savings on rent, utilities, and commuting.[1]
Caregiving demands play an equally vital role. As baby boomers age, adult children prioritize proximity. Pearl Emmons, the Boston-area agent involved in the Somerville deal, observed, “I think that for anybody with aging parents, it’s nice to be able to be close to them for support reasons.” National Association of Realtors surveys confirmed this, with 36 percent of 2024 multigenerational buyers citing cost savings – more than double the 15 percent from 2015 – and others pointing to returning adult children or ongoing family care.[1][2]
Higher Costs Come with Strong Market Appeal
These specialized homes command steeper prices per square foot as well – $262 compared to $215 for standard listings. Features like in-law suites, extra kitchens, and separate entrances drive up construction and maintenance expenses. Two-family structures, common in areas like Somerville, often demand updates for deferred repairs, yet they offer value per space in dense markets.[1]
Market response remains robust. Multigenerational listings drew 13.5 percent more page views than average and closed on similar timelines. Realtor.com researchers noted this demand persists even as overall inventory tightens. The firm’s definition – properties tagged with terms such as “guest house” or “granny flat” – likely undercounts true prevalence, since multi-unit dwellings evade consistent tracking.[1]
Demographic patterns add layers to the picture. Generation X families, sandwiched between children and parents, frequently pool multiple incomes – often three or more – to afford these homes. Younger buyers, facing stagnant wages against rising rents, increasingly welcome grandparents into the mix for stability. Regional hotspots emerge in high-cost zones, where two-family homes provide a workaround to single-family premiums.[2]
Broader economic strains amplify the appeal. Renters faced $100 monthly hikes from 2020 to 2024, while ownership costs held steady for some. Yet first-time buyers, hit hardest, turn to family networks for entry points into ownership.[1]
Balancing Benefits Against Realities
Families embrace these arrangements for more than finances. Hannah Jones, a senior analyst at Realtor.com, captured the essence: “A sense of shared purpose and care is at the heart of multigenerational living, a housing arrangement that is quietly shaping American family life.” Daily interactions foster bonds, from grandparents aiding with childcare to shared household duties easing isolation.[1]
Challenges persist, however. Coordinating expectations requires open dialogue, and upkeep on older multi-unit properties can strain budgets. Still, the trend points to resilience. As housing affordability lingers as a national concern and boomers enter their later years, multigenerational homes offer a viable path forward for many families.
