(Published on - 6/28/2025 6:34:43 AM)
Families Are Sticking Together: Multigenerational Homebuying Hits an All-Time High as Americans Battle Soaring Cost of Living
Realtor.com
BY SNEJANA FARBEROV
JUNE 6, 2025
Older parents and their adult children are increasingly choosing to live together as Americans battle the cost of living, propelling multigenerational homebuying to a record high.
Of all demographic groups, Gen X—people born between 1965 and 1980—accounted for the largest share of homes bought with the intention of housing several generations of the same family.
The latest Profile of Home Buyers and Sellers report by the National Association of Realtors® reveals that multigenerational dwellings made up 17% of home purchases last year, representing an all-time high.
Multigenerational homes are defined as households that comprise more than one generation, such as adult siblings, adult children, or grandparents.
"The rise in multigenerational home buying underscores a broader trend driven by economic necessity and evolving family dynamics, as it offers a practical and supportive living arrangement that resonates with many families, particularly in times of economic uncertainty and changing social dynamics," writes Amethyst Marroquin, research assistant for NAR.
According to NAR's 2025 Home Buyers and Sellers Generational Trends Report, 21% of Gen X buyers led in the purchase of multigenerational homes, followed by younger baby boomers between ages of 60 and 69, at 15%; and older millennials between the ages of 35 and 44, at 12%.
This generational breakdown is the product of a shift that has occurred over the past decade, pushing Gen X, also known as the "sandwich generation," to the top of the multigenerational housing market.
In comparison, in 2013, Gen X made up just 12% of multigenerational homebuyers. In a span of 10 years, their share increased by nine percentage points.
Older millennials followed a similar path, although their gains were more modest, increasing from 9% in 2018 (the first year "older millennials" were defined as a category) to 12% in 2025.
"The cost of homeownership has climbed significantly over the last few years and, as a result, buyers have gotten creative," says Realtor.com® senior economic research analyst Hannah Jones. "One way to offset high housing costs is by combining forces and buying with family."
Meanwhile, younger baby boomers have seen their share of the multigenerational market noticeably shrink, from 22% in 2013 to 15% in 2025.
Economic challenges drive the trend
Last year, more than a third of homebuyers cited "cost savings" as the main reason for buying a multigenerational home, up from 15% in 2015, according to the NAR report.
The survey coincided with rising mortgage interest rates and home prices, which have made it increasingly difficult for many Americans to afford a home on their own.
Not surprisingly, NAR researchers found that a growing number of adult children were living with their parents.
According to the report, 21% of respondents cited their children over the age of 18 moving back with them as a reason for their buying a multigenerational home, up from just 11% a decade earlier.
Meanwhile, 20% of respondents shared that their grown children had never left home in the first place, up from just 7% in 2015.
"These shifts underscore the rising popularity of multigenerational living arrangements, driven by both economic factors and family dynamics," says Marroquin. "Adult children may continue living at home seeking financial stability due to high living costs, student loan debt, and difficulties in finding well-paid jobs."
As a result of these trends, Gen X and boomer households are more likely than other demographic groups to include adult children who have returned home because of economic hardships.
"While younger buyers are still in the early stage of their career, having some help from their parents can be beneficial to boost savings and housing prospects down the line," adds Jones.
Meanwhile, data parsed by NAR experts points to older millennials purchasing multigenerational homes to move in with their aging parents.
Thirty-five percent of people in their late mid-30s to mid-40s older cited their aging parents' health and caretaking responsibilities as a reason for their decision to purchase a multigenerational home.
Additionally, nearly a third of older millennials reported that they bought their homes to spend more time with their parents in their golden years.
Marroquin predicts that as families continue to adapt to economic uncertainty and social shifts, multigenerational living is likely to become an increasingly prominent feature of the housing market.
