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Multiple generations living under the same roof isn’t necessarily a new concept. However, this type of household has gained significant popularity in the United States over the past decade. While housing experts expected this trend to fizzle out post-COVID-19 pandemic, multigenerational households have continued to increase.
Multigenerational homes are defined as having more than one generation living under the same roof, such as adult siblings, adult children, grandparents, or other relatives. These mixed relationships can foster mentorship, life-skill development, and genuine human connection.
Before the rise of single-family homes, it was common for families to have multiple generations under one roof. While these numbers dwindled after the end of World War II, they have increased after the COVID-19 pandemic. Pew Research reported that nearly 50% of young adults between the ages of 18 and 29 lived with their parents in 2024. This is the highest level of reported data since the 1940s. The National Association of Realtors (NAR) agrees that this household arrangement is at an all-time high. In fact, 17% of all homes purchased in 2024 were for multigenerational purposes, according to their data.
Humans, in general, are social animals. For all generations, building social connections can decrease feelings of isolation, loneliness, and anxiety. Limitations for elders such as physical ailments or transportation challenges can make socialization more difficult with age. With more than one generation under the same roof, an older adult in a multigenerational home is more likely to create lasting bonds of support and care.
NAR’s data shows that 36% of homebuyers in 2024 cited cost savings as the primary reason for purchasing a multigenerational home. Both older and younger adults can benefit from splitting homeownership costs, like upkeep, maintenance, and even mortgage payments. Younger adults may benefit from the opportunity to build their own savings while assisting older household members with house projects and other expenses.
Caring for an elderly family member was the top reason for purchasing a multigenerational home for 25% of NAR survey respondents. Routine or emergency medical appointments, transportation, and daily care can all be stressers for older adults, especially if they live alone. However, a multigenerational home may offer a cost-effective alternative to assisted living or a long-term care facility.
Additionally, younger families can benefit from having additional support for childcare. A grandparent or older family member may be able to provide trusted care while parents work or handle other care.
The multigenerational housing boom is reshaping not just who buys homes, but also which homes are purchased. Key features that facilitate aging-in-place are major selling points for older and younger generations alike.
Buyers often request:
Housing arrangements continue to evolve to better serve people of all ages and abilities. Ideally, a multigenerational space should ensure comfort, functionality, and a level of independence and privacy for all people involved.
Jumbo loans may be good financing options when the home you’re purchasing is listed higher than the conforming loan limits set by the Federal Housing Finance Agency. Depending on your state, our jumbo program offers financing up to $5,000,000 for a variety of properties, including primary residencies and second homes.
A home equity line of credit, also known as a HELOC, borrows money against the equity of the home. You’ll be able to access the money when you need it and use it for renovations, debt consolidation, and more. You’ll only pay interest on the funds you use, helping homeowners budget in a manageable way.
Whether you’re looking to purchase a new home or upgrade your existing one, our diverse renovation programs can help you create your dream space—all with our exceptional customer service and personalized advice from a Licensed Loan Originator. However, it may be better to build your home to fit your needs from the ground up.
As physical and monetary needs evolve for homebuyers, housing experts expect multigenerational living to continue to rise. Regardless of your home financing needs, we’re happy to be by your side along the way as your mortgage professional! Ready to get started? Contact us!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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