The National Association of Realtors recently released its 2022 Profile of Home Buyers and Sellers. An interesting trend noted in the report is that multigenerational home buying has become increasingly popular. The research shows that 14% of all home buyers last year purchased a multigenerational home.
Having multiple generations living under the same roof was the norm through the 19th century, but that dynamic shifted at the turn of the 20th century as the first institutional buildings for senior citizens began popping up in the US. The D/R/E/A/M Collaborative further explains that the trend in elderly parents living separately from family became even more prevalent after the Social Security Act of 1935. The lowest period in US history for multigenerational households occurred between the 1970s and 1980s.
The traction of this living arrangement is now rapidly rising. The number of people living in multigenerational households quadrupled between 1971 and 2021, according to the Pew Research Center. A survey by Generations United found that 1 in 4 Americans lived in a multigenerational home by 2021. Nearly 57% of those surveyed moved in together or decided to continue living together because of the pandemic and 72% of households surveyed said they plan to live together long term.
Multigenerational households most often include a senior parent living with their children or adult children remaining in their family home longer or moving back into the home. Gen X has been dubbed the ‘sandwich generation’ as approximately 54% of adults in their 40s are taking care of a parent 65+ while raising a child under the age of 18 or providing financial assistance to an adult child.
"Adults who are sandwiched between an aging parent and a minor child or an adult child they’ve helped financially are more likely than those who are not in this situation to say they are very satisfied with their family life (48% vs. 43%, respectively). This difference is particularly pronounced among those in their 40s: About half of sandwiched adults in this age group (49%) say they are very satisfied with their family life, compared with 38% of other adults in the same age group.”
- the pew research center
Finances were a main contributor for those choosing to live with family. 40% of adults in multigenerational households listed financial issues as a major reason for the decision and 28% considered it to be at least a minor reason. Additionally, 30% of adults living with a parent stated that the arrangement helped their financial situation a lot. Data from the Pew Research Center also cites that Americans in multigenerational housing have lower rates of poverty (10%) compared to other types of households (12%).
Caregiving is another primary concern. The NAR Profile of Home Buyers and Sellers found that 30% of multigenerational purchasers listed caretaking and spending time with aging relatives as a reason for buying property that would accommodate adult family members.
Multigenerational living is experiencing a revival with families choosing to live under one roof and embrace the benefits of shared spaces and support systems. From financial stability to emotional bonds and intergenerational care, there are many advantages to multigenerational housing. As more Baby Boomers enter retirement, there’s a good chance this trend will continue to gain prominence.