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US families are increasingly buying homes to house members of multiple generations.
A record 17% of home purchases last year were “multigenerational” properties, up from 11% in 2021 and the highest share in data going back to 2012, according to a report from the National Association of REALTORS®.
Among buyers of all ages, 36% said cost savings was the top reason for purchasing a multigenerational home, according to NAR. Members of Generation X, roughly aged 45 to 59, were the most likely to make a such purchase, citing the need to take care of aging parents and because their adult children never left home or are moving back.
Multigenerational housing is not a new concept, but has gained popularity since the pandemic as inflation has crimped household budgets and soaring home prices have made it harder for people to afford houses.
“Families are looking for a way to double up and save money,” said Jessica Lautz, NAR’s deputy chief economist. “Pooling financial resources either for the mortgage or for household expenses may actually be the way to go for some people.”