Is a Multigenerational Home Right for You?

Multigenerational living has been gaining traction as a viable housing alternative. The cost of everything is increasing: housing, healthcare, transportation, and utilities are stretching budgets. The market’s affordability challenges are occurring at the same time healthcare costs for aging adults are skyrocketing. Interest in multigenerational homes will likely increase as more baby boomers retire. Families see it as a way to care for aging parents affordably while providing all the space and privacy they desire. 

Is a multigenerational living arrangement something you are considering? Weigh these factors before purchasing a multigenerational home.

What is a multigenerational home?

Multigenerational housing differs from multifamily housing in that several generations of a family, such as grandparents, parents, and children, live under one roof. That doesn’t necessarily mean it’s not a multifamily home. Some families buy duplexes, with the generations living on different sides to give everyone separate spaces while maintaining closeness. 

But it’s not exclusively this kind of arrangement. Grandma could live in one of the bedrooms of a single-family home, or the adult children could have converted the basement into an apartment unit. Every multigenerational living situation is different.

By March 2021, nearly 60 million Americans lived in multigenerational households, representing 18% of the population. Young adults living longer in their parents’ home contributed to that statistical boost. Various practical reasons are keeping adult children under the roof, like lack of housing and challenges to saving for a down payment.

What does multigenerational housing look like?

Today’s multigenerational homes take on many forms. You’ve likely heard the term “mother-in-law” suite; while that’s one example of a home that can accommodate multiple generations, it could be:

• A multifamily home such as a duplex or side-by-side townhome where each generation gets an individual unit
• Two separate homes built on the same lot
• An outbuilding, such as a garage, converted fully or partially into a living unit (also known as accessory dwelling units)
• An add-on to an existing single-family home built with a separate entrance
• A garage, basement, or flex space converted to a separate living unit
• A custom multigenerational house plan divided into living “units” or wings, with a common area and an attached apartment or second living space.

As you can see, multigenerational houses are highly varied in their setup. That’s because no two families have the same needs or financial situation. Where families with older parents might prize accessibility features, another with young adults may prefer privacy.

While this living arrangement offers several advantages, it may not suit everyone. Look at the pros and cons of multigenerational living to help you determine if it’s the right choice for you and your family.

Pros of Multigenerational Living:

Shared expenses

Life isn’t getting any cheaper, and it certainly doesn’t as we age and healthcare expenses increase. Multigenerational living has financial benefits through pooling the generations’ resources. 

Families often afford larger and more comfortable homes than they would individually. According to the National Association of Realtors (NAR), 15% of first-time buyers were part of a multigenerational home purchase in 2022.

This can lead to significant rent or mortgage payments, utilities, and grocery cost savings for all the adult generations. With the right financial agreement, everyone reduces the burden of property taxes, homeowner’s insurance, and mortgage payments. That increases income for other things, like paying off student loan debts or travel in retirement.

Emotional support

There’s a saying that no one has your back like family. Having multiple generations under one roof brings a whole new level of family togetherness. It increases the companionship and access to emotional support for those aging in place. Grandparents can help care for young children, reducing the burden of childcare on hardworking professionals. That’s especially beneficial for single parents who could use additional support raising their children.

And older family members may benefit from being close to younger generations. Studies have shown that older adults living in multigenerational households tend to live longer, as they’re more active and engaged with people. Spending more time with family reduces feelings of loneliness and isolation.

Knowing that someone is right there should something happen, whether a parent has a work emergency and will be late picking up the kids or an aging parent needs medical help, adds peace of mind for everyone.

Shared responsibilities

Homeowners often cite maintenance as one of the drawbacks of homeownership. Multigenerational households divide and conquer household chores and caregiving responsibilities, reducing the burden on any one individual. Having extra hands to mow the lawn or cook dinner leads to a more balanced and manageable family life.

Cultural traditions

In some cultures worldwide, having grandparents, parents, and children under one roof is the norm. For immigrant families, continuing that pattern of multigenerational living helps preserve cultural traditions and values. Younger generations learn their language, customs, and family history from their elders. That quality family time ties everyone together and enhances those vital familial bonds.

Cons of Multigenerational Living:

Privacy concerns

The primary challenge of multigenerational living is giving everyone the right amount of space and privacy. Not everyone recharges by being around others, or they may not want everyone to know what they’re doing every moment of the day. Sharing living spaces limits personal space and quiet time, leading to potential conflicts and stress.

For older adults moving in with young children, having their grandchildren so close may first sound great. But they likely have forgotten how noisy and busy a household can be with little ones running around.

Space constraints 

Most current homes were designed for a nuclear family of around 4-5 people and not larger families that need extra space. To get a comfortable living space, living all together in peace may require a larger living space. Even though pooling resources increases buying power, it still may be too expensive or impractical in some areas to buy more square feet of living space. Finding a suitable home that comfortably accommodates everyone’s wants and desires can be a significant hurdle.

Specific needs may further hamper the required space. For instance, if a family member has mobility issues and needs wider pathways or an accessible bathroom, that changes the layout or square footage. Retrofits to add accessible features can be costly. 

Differing lifestyles

Different generations may have contrasting lifestyles, schedules, and preferences. These differences can lead to conflicts over issues like noise, cleanliness, and household rules. This gap is more apparent if someone must work night shifts or if young children must be in bed early for school. Young adults may prefer to stay out late while their parents have been in bed for hours. 

Financial dependency 

While shared expenses can be an advantage for buying power, they also create financial dependency among family members. Deciding how much each generational unit contributes financially to mortgage payments, utilities, or other costs opens the door to money conflicts. 

This is especially true if one set of adults makes significantly more money than another. That set may feel entitled to more space in the home. Or, the generation making less money may feel the larger income producers should pay more towards the expenses.

Be aware sharing a roof can lead to complicated financial arrangements. Potential conflicts over money can sow deep divisions in a family that may not be worth it.

Limited autonomy 

Living with extended family members can sometimes limit your autonomy and decision-making regarding household matters. Balancing individual desires with the needs and wishes of the entire family can be challenging. That spans everything from what color to paint the living room walls to who must get home to let the dog out.

More work

The bigger the home, the more people and the more work there is to keep the ship moving smoothly. Think about it: how much more laundry will there be with six people versus four? How about meal prep in the kitchen or simply dusting and straightening around the home? Many hands make light work, but they also create more work when it comes to essential chores and household maintenance.

Opting into multigenerational living

Ultimately, whether multigenerational living is right for you depends on your family’s unique circumstances, values, and preferences. It can be a rewarding experience that strengthens family bonds, provides support, and eases financial burdens. However, it also comes with challenges related to privacy and differing lifestyles.

Before deciding, consider your family’s dynamics, financial situation, and long-term goals. Open and honest communication among family members is essential to address concerns and establish ground rules for successful multigenerational living. Moving in together will shift the family roles.

It’s wise to consult with a financial advisor or housing expert to explore your options. More home builders are providing purpose-built multigenerational homes with features like split wings, units with separate exterior entrances, or mother-in-law suites. As with any big financial decision, take your time to weigh the benefits and drawbacks. Just know your options are there when you’re ready.

Updated July 2024