Multigenerational Homebuying Hits an All-Time High as Americans Battle Soaring Cost of Living

Source: realtor.com

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. Multigenerational homes are defined as households that comprise more than one generation, such as adult siblings, adult children, or grandparents. 

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.

Graph from NAR

In 2013, Gen X accounted for only 12% of multigenerational homebuyers, but their share rose by nine percentage points over the next decade. Older millennials also saw growth, increasing from 9% in 2018—the first year they were categorized—to 12% in 2025. Conversely, younger baby boomers’ share of the multigenerational market declined significantly, dropping from 22% in 2013 to 15% in 2025.

Economic Challenges Drive The Trend

Last year, over a third of homebuyers said "cost savings" was their main reason for buying multigenerational homes, up from 15% in 2015. Rising mortgage rates and home prices have made solo homeownership harder, leading more adult children to live with their parents. Not surprisingly, NAR researchers found that a growing number of adult children were living with their parents.

Graph from NAR

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. 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.

35% of people in their late 30s to mid-40s cited their aging parents’ health and caregiving needs as a key reason for buying a multigenerational home. Additionally, nearly a third of older millennials said they purchased these homes to spend more time with their parents during their later years.