More Than 1 In 6 Home Purchases Last Year Were 'Multigenerational,' And The Number Of Families Doing It To Save Money Has Doubled

Core Insights - The trend of multigenerational home purchases is driven by economic necessity, with 17% of all home sales in the U.S. being multigenerational in 2022, marking an all-time high [1] - In 2024, 36% of buyers cited cost savings as the primary reason for multigenerational purchases, a significant increase from 15% in 2015 [2] Economic Factors - Families are increasingly viewing their homes as financial foundations, utilizing home equity for renovations or separate living spaces to facilitate multigenerational living [2] - A home equity loan can allow homeowners to borrow up to 90% of their home's value, providing substantial financial resources for those looking to adapt their living situations [3] Demographics of Buyers - Generation X (ages 45-59) is the leading demographic in multigenerational home purchases, increasing their market share from 12% in 2013 to 21% today [4] - Older millennials (ages 35-44) account for 12% of multigenerational home buyers, primarily to care for aging parents [6] - Younger baby boomers (ages 60-69) represent 15% of the market, although their share has decreased from 22% a decade ago [6] Motivations for Multigenerational Living - The rise in multigenerational home buying reflects broader economic challenges, including high living costs and student loan debt, prompting families to rethink their living arrangements [4][5] - Key motivations include adult children moving back home (21% of buyers) and households with multiple income earners becoming more common among buyers aged 45 and older [5]