A report from the National Association of Realtors revealed a rising number of families adopting multigenerational living. In 2024, these arrangements, where grandparents, parents, and children reside under one roof, reached a 10-year peak with 17% of bought homes being multigenerational.
Notably, finances partially fuel this trend. More than one-third (36%) of homebuyers indicated that cost savings drove their decision to purchase a multigenerational home, a significant leap from the 15% recorded in 2015.
Retirees, in particular, can benefit considerably from multigenerational living. Sharing expenses with adult children can help seniors preserve their retirement fund and lessen financial burdens. Skyler Denny, a certified financial planner (CFP), supports this concept, highlighting how multigenerational families can decrease major costs like housing, utilities, food, and transport by living together.
Yet, the benefits extend beyond just financial aspects. Living in a multigenerational setup can offer emotional support, foster stronger family ties, and even help combat loneliness, a prevalent issue among individuals aged 50 to 80. Notably, 18% of homebuyers in the survey mentioned they purchased their homes to spend more time with elderly parents.
Denny suggests that a structured agreement and clear conversations about sharing finances, roles, and responsibilities can make multigenerational living an effective way to build wealth and share duties across generations. For a smoother process, documenting the arrangement with help from a financial planner or estate attorney is recommended, alongside establishing ground rules for household decisions and conflict resolution.
Multigenerational living is growing popular as families seek ways to cut costs. For retirees, residing with adult children can provide financial relief, emotional backstop, and a sense of connection. With careful planning, this can evolve into a satisfying and sustainable arrangement for everyone involved.