Home prices don’t look like they’re going down anytime soon, so why not try out multigenerational living? According to data from Pew Research Center, many already are. Around 58.7 million Americans, or 18% of the population, to be exact.
It may seem like that younger adults are part of this trend, since around 35% of those aged 25 to 29 live with family, most likely due to the fact that moving out is more expensive.
Those who purchase homes may also be feeling the financial burden of housing, as the National Association of Realtors (NAR) found that 36% of buyers in 2024 who purchased a multigenerational home did so because of the cost savings. This percentage has effectively doubled over the past 10 years.
So can multigenerational homes help you afford homeownership?
Ways That Multigenerational Living Can Save You Money
The main perk of multigenerational living is the financial savings. Here are a few.
Shared Housing Costs
Splitting the cost of one home is obviously cheaper than multiple ones. You’re also sharing related costs like utilities, internet and property taxes, so every major bill tends to cost less when more people contribute to these expenses.
Plus, pooling your financial resources means that you all could afford a larger home in a more desired neighborhood when you may not have been able to otherwise.
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Lower Childcare and Eldercare Costs
Childcare is a massive expense, and if you’re living with other relatives or parents, having them help out with watching your children can lower your costs dramatically. Or, you may be able to help aging parents with their needs which can help cut costs for expenses like assisted living facilities. That is, assuming everyone has the time and resources to help, you can free up thousands of dollars or more per year.
Better Chance of Maintaining Financial Health
Pew Research found that those living in multigenerational households are less likely to fall into poverty compared to those living alone. Plus, paying less means that you can free up funds for other goals like building an emergency fund, paying down debt or contributing more to a retirement account.
What To Consider Before You All Live Under One Roof
Before combining households, you’ll want to consider some of the boundaries you’ll all need and want beforehand.
First, think carefully about everyone’s need for space and privacy and use that to guide your home search, or how you’ll arrange a current home you have. Does the layout give everyone enough space to gather and be on their own? What areas will be used for everyone or certain family members? What types of resources will you share, like kitchen appliances or towels?
You’ll also want to think about the day-to-day tasks like cleaning, cooking and other household chores. Who will be doing the caregiving? Will you divide up chores, and who will complete which tasks and when?
If you want guests or host events, you’ll want to spell out expectations upfront. That way, when everyone knows what the boundaries are, it helps everyone in the house get along and helps prevent any misunderstandings.
When it comes to finances, it’s just as important to talk openly. Take the time to sit down and discuss things like how to split groceries, utility costs and even who gets to be on the deed. Having this laid out is also helpful when situations change whenever one of you decides to move out in the future.
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This article originally appeared on GOBankingRates.com: Are Multigenerational Homes the Best Path to Affordability?
