Multigenerational LIVING
Many luxury homebuyers are looking for properties that bring the whole family together.
Several generations sharing a family home is emerging as a significant trend in luxury real estate. While families once often shared a home primarily to reduce costs and provide a secure launchpad for their children, today many of them are more focused on emotional connections, shared caregiving across generations and creating a family legacy.
In 2024, an estimated 17% of U.S. homebuyers purchased a residence with the intent to house multiple generations, according to an April 2025 report by the National Association of REALTORS® (NAR).1 The report defines a multi-generational household as one that includes more than one adult generation, such as a couple living with their adult children or their own parents.
“More and more families see a home as one of the best ways to pass down both wealth and values,” says Rodd Macklin, co-founder and senior managing director, Pennington Partners & Co., LLC. “With roughly US$84 trillion expected to change hands down the generations in the U.S. over the next 20 years, people want that transfer to feel real and lasting. A house can do that. Unlike stocks or a business, a home has stories attached to it. It can become a place where weddings, holidays and traditions keep the legacy alive.”
Each generation thinks about multigenerational homes in different ways, Macklin says. Baby Boomers (those born 1946-64) often downsize their day-to-day living arrangements but keep a home where everyone can gather, while Generation X (born 1965-80) are increasingly providing for elderly parents and their adult children under one roof.
Meanwhile, Millennials (born 1981-96) and Gen Z (born 1997-2012) prefer flexible living spaces rather than large houses. “What’s the same across all generations is that their homes give a sense of belonging. It’s not just real estate,” Macklin says. “It’s where the family heartbeat is.”
The demographics of multigenerational homebuyers
Source: National Association of REALTORS®, “2025 Home Buyers and Sellers Generational Trends Report,” April 2025
Millennials
Generation X
Baby Boomers
Silent Generation
Renewed interest in a traditional lifestyle
At the turn of the 20th century, 57% of Americans over the age of 65 lived with their children, grandchildren or other family members, according to a July 2021 Generations United® report.2 Social Security, introduced in 1935, enabled more older adults to live independently, with the number of multigenerational homes slowly decreasing to approximately 7% in 2011.
The COVID-19 pandemic, which began in 2020, was largely responsible for rekindling interest in multigenerational living, and by 2021 one in four adult Americans (aged 18 and older) were living in such a household—a 271% rise over just a decade, the report found.
The rise in adult children living with their parents is a primary driver for multigenerational living, according to another report released by NAR in May 2025.3 In 2024, 21% of respondents in the study said that adult children moving back home was a reason they had bought a multigenerational residence—nearly double the 2015 figure (12%). Equally influential was the desire to spend time with or care for aging parents.
Generation X is now driving the demand for shared housing, accounting for 21% of homebuyers, up from 12% in 2014, according to NAR’s research. The representation of Millennials among multigenerational homebuyers also grew, from 6% to 19%. At the same time, the proportion of Baby Boomer homebuyers stayed steady at 28%.
“We are seeing this trend quite often now, from multiple age groups and for both new construction and renovations,” says Bob Zuber, a partner at Morgante Wilson Architects in Chicago, Illinois. “Younger couples who have maybe broken through into the luxury housing market are finding that it may be more economical for their parents to live with them instead of paying the high costs of independent living.”
“ EACH FAMILY HAS ITS OWN SPECIAL NEEDS, WHICH MEANS EACH HOUSE CAN BE A BETTER OR LESS SUITABLE FIT FOR THEM.
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John Young, global real estate advisor, Golden Gate Sotheby’s International Realty
John Young, global real estate advisor, Golden Gate Sotheby’s International Realty, characterizes the homebuyers he encounters in his markets of Palo Alto and Silicon Valley in California as an active, hardworking group. “They perhaps have small children, and they’re in a position to give a better life to their parents, who got them where they are,” he says.
In some cases, the younger generations look to their parents for ongoing advice. “What I’ve experienced with adult children and their parents is that they want their parents’ input on whether or not a space would work for them,” says Tammy Tinnerello, global real estate advisor, William Pitt Sotheby’s International Realty in Connecticut. “They want their parents to be part of their lives.”
In addition, she says that there is an increased sense of caring for one another in families considering an investment in a multigenerational home. “The attitude tends to be: You raised us, and we’ve got these great careers because you helped us through college and everything else. I don’t know if it’s related to the pandemic period, when people started spending more time with their families, but it is on a different level.”
This expansive property in Southampton, New York, dates to 1885 and has 13 bedrooms.
Sotheby’s International Realty - Southampton Brokerage
Multigenerational home purchases in 2023-24
Source: National Association of REALTORS®, “2025 Home Buyers and Sellers Generational Trends Report,” April 2025
Among high-net-worth individuals (HNWIs) the decision to purchase a multigenerational property is as much about family ties as it is about preserving a legacy, even though over time it’s likely the property’s value will appreciate, says John LeMieux, co-founder of Anton LeMieux, a wealth management firm based in Maine and Florida.
“Around the world, wealthy families have used property to preserve wealth for generations,” adds Macklin. “In the U.S., we’re seeing more of it now, often with limited liability companies, trusts or partnerships that make it easier to share costs and plan for taxes while letting the property grow in value. But it’s also about having somewhere that ties everyone together. A ski place in Vail, Colorado, a beach house in Florida, or a home in the Hamptons, New York, often fills that role.”
Legacy often dominates conversations about buying a multigenerational home, particularly at higher price points—and the most cohesive families align an emotional legacy of shared values and a sense of belonging with preserving and transferring wealth, Macklin says. “A home is often the anchor where families come together, making it a natural place for conversations about prosperity,” he says. “At the same time, it’s a major asset that must be structured thoughtfully if it’s going to last across generations.”
Wealthy families use legal and financial tools to ensure they preserve the value of a multigenerational home, but they don’t stop there, Macklin says. “They also set clear expectations for use and make sure the property remains the gathering place that keeps the family’s story and its values alive. These families treat the property almost like an enterprise. They’ll set up informal boards or councils and hold regular meetings, often at the home itself, to talk about stewardship, costs and long-term goals. These gatherings double as family reunions and structured conversations, which is why the home continues to be both an appreciating asset and a unifying tradition.”
A global perspective
Outside the U.S., multigenerational living is making a similar comeback, especially in countries that have a cultural heritage of honoring and valuing the older members of their families.
“In Japan, the idea of a family living together has profound roots,” says Kantaro Aoki, global real estate advisor, List Sotheby’s International Realty, Japan. “Historically, it was common for the grandparents, parents and children to live together in the same household, especially in rural areas. Although the nuclear family became more common in the postwar years, the trend toward multigenerational homes is re-emerging.”
Two key factors are contributing to the increased demand for multigenerational homes, he says: the functional benefits of keeping extended family members nearby for childcare, eldercare or shared daily responsibilities, and the long-term strategy of maintaining family-owned properties across generations.
Multigenerational homes are common in Brazil, but the reasons for their popularity among high-net-worth households are changing. “Traditional family values continue to shape how homebuyers envision their homes, but in a more nuanced and evolved way,” says Renata Victorino, general sales director, Bossa Nova Sotheby’s International Realty, in São Paulo, Brazil. “Historically, Brazilians lived in multigenerational homes out of necessity. Today, the concept has transformed. The desire for closeness and family connection remains, but it is now paired with a strong emphasis on individual autonomy and quality of life.”
In Greece, the motivations among the wealthiest domestic homebuyers “are deeply personal rather than financial—they buy homes to live in, enjoy, and share with family, not for international capital placement or speculative gain,” according to a 2025 report by Greece Sotheby’s International Realty.4
Panorama, a rare private estate on the Greek island of Mykonos, offers uninterrupted Aegean views.
Greece Sotheby’s International Realty
What homebuyers want
The desire to create a place for the family to come together is a prime driver for the multigenerational trend in higher price brackets. Location, purpose, architecture, land availability and cultural norms play into what makes a property ideal for several generations.
“Thoughtful planning by an architect of how people want to live is the difference between successful intergenerational living and a big house,” says Zuber, who is a strong proponent of what he dubs “away space.”
“Think rec rooms, sitting rooms, separate entry points if necessary, reading nooks and playrooms. Not everyone wants or needs to be surrounded by family members at all times. Dividing up a shared place cleverly can allow older folks to have a feeling of independence from their adult children and grandkids—features such as kitchenettes or separate TV rooms and sitting areas mean they can have meals and evenings on their own if they want.”
Even before the pandemic, architects were designing homes with dedicated spaces for the older or younger generations. Today, many high-end builders offer options such as a guest suite incorporating a kitchen, living area, bedroom, bathroom and laundry area to accommodate multiple generations in one home.
At higher price points, the term “multigenerational living” encompasses a diverse range of options, from single-family homes with integrated spaces for extended family to larger properties with multiple dwellings or homes located nearby but not on the same piece of land. In some instances, having an accessory dwelling unit (ADU) in the backyard can be an acceptable compromise.
However, Young says, many clients, particularly those from overseas, want to take active care of older relatives. “Some families feel that an ADU is too far away,” Young says. “Even if only for a two-month visit, some foreign homebuyers want to have a bedroom on the ground floor, with the rest of the family upstairs.”
A traditional solution is an apartment or suite on a level below ground. “That works fine if you’ve got mobility,” Young says. “It’s great for a teenager who wants a bit of distance. But it’s a question mark for aging parents who might have concerns with stairs. Each family has its own special needs, which means each house can be a better or less suitable fit for them.”
“For younger families building or renovating homes there is a lot of interest in including ‘in-law’ suites with a bit of privacy from the main areas of the home,” says Zuber. In a more urban location, such as Miami, Florida, or New York City, a strategy of purchasing two adjacent townhouses or condos might better fulfill the desire for a multigenerational property.
Finding the right property and meeting a homebuyer’s vision can require “outside-the-box thinking,” which Tinnerello considers essential. “There is no drop-down menu option for multi-generational homes on the multiple listing service. You actually have to put it in the verbiage and describe the property as suitable for multiple generations.”
In Japan, families today are seeking designs that respect both traditional and modern lifestyles, and homes that will allow grandparents and parents to live closely together while still maintaining their independence, Aoki says.
In Tokyo’s luxury market, multi-generational homes are often tailor-made. They may be large urban residences or condominiums designed with several separate suites, complete with private entrances or entire wings for different family members.
“Outside the capital, in places such as suburban Tokyo or Kanagawa, or resort areas such as Karuizawa and Niseko, homebuyers tend to lean toward spacious detached homes or estates,” he adds. “These often include multiple primary bedrooms, self-contained guest quarters and generous outdoor spaces. Scenic gardens or viewpoints are significant, as the home typically serves as a gathering place for the extended family.”
In Tokyo, Japan, luxury homes are often tailor-made, such as this three-story residence in Meguro-Ku.
LIST Sotheby’s International Realty, Japan
It is common in Brazil for several generations of a family to occupy the same house. This property in São Paulo has five bedrooms and five bathrooms.
Bossa Nova Sotheby’s International Realty
In Brazil, younger generations value their independence but like having emotional and logistical support from their families, says Victorino. Meanwhile, older people who are more active and financially independent want to preserve their privacy while staying close to their children and grandchildren. “This has created demand for properties that function as family compounds, whether in urban settings with independent but nearby units, attached guest residences or a second home that can serve as a natural gathering point.”
High demand has fueled an increasingly sophisticated supply of family compounds in the country that rival international resort standards, she adds. “In countryside communities these projects create self-sufficient ecosystems, where proximity to nature blends seamlessly with urban comforts. Usually located within a two-hour drive of Brazil’s major cities, they allow people to enjoy a superior quality of life—ample space, security and nature without losing access to essentials like international schools, top-tier hospitals and luxury shopping.”
Building generational real-estate wealth
Multigenerational housing doesn’t look the same for everyone, Macklin says. “It might include a ski house, beach house or mountain lodge that everyone uses at different times of the year. It could involve multiple structures on the same piece of land. Another example is a vineyard, ranch or historic home that doubles as a place to gather and also produces income.”
Generational housing takes many forms within the luxury real estate market, says Sandra Wendland, global real estate advisor, Legacy Sotheby’s International Realty in Portland, Maine. “Sometimes it’s a lakefront property, sometimes oceanfront or even island compounds, because it goes back to the family seeking meaningful time together with extended family and friends. Those homebuyers are often drawn to properties featuring multiple dwellings that provide ample space for everyone to gather.”
Although creating a family legacy may not be explicitly stated, it is a goal for many homebuyers, particularly those in the market for vacation homes. Wendland cites the example of a seasonal lake property comprising a main lodge, two cabins and a garage apartment.
“The client was a family from the Midwest looking for a special retreat where their children, parents and eventually grandchildren could come together,” she says. “This property had already served as a cherished gathering place for building long-lasting family memories, a tradition the previous owner upheld for 70 years. To see a property go from one extended family to another with the same intent is not uncommon, especially in Maine.”
One of her recent transactions – a lakefront property near the base of a ski resort – included the buyer’s mother, who had grown up skiing there. “She was elated to be able to enjoy the mountain and lake with her grandchildren,” says Wendland. “The former owner had built the property 50 years ago for his own family.”
A place to unplug with the rest of the family
Since every family is different, luxury multigenerational home purchases are made for diverse reasons. “From the cultural aspect, I think the luxury end is really about unplugging and not having to be on all the time,” says Margaret “Meg” Smith, global real estate advisor, Daniel Gale Sotheby’s International Realty in Bay Shore, New York.
This is a homebuyer profile she frequently sees on Fire Island, New York, which is considered a laid-back alternative to the Hamptons. This market offers a lot of multigenerational homes that are ideal for buyers who are purchasing with family in mind, she says.
For example, Smith recently sold a property with three separate houses that had been reconstructed by architects so that one house was sited on the bay, one faced the ocean and the third was centered between them as an entertainment space. Two brothers thought it was a perfect property for them because each one could have their own home and they could bring their families together in the middle for dinner and relaxation, Smith says.
“What we learned from that transaction is that a lot of people who own houses in other parts of the country want a place where they and their family members can completely shut out the outside world and just be themselves, without having to worry about the hustle and bustle of their regular lives. They want to be surrounded by the people they cherish the most.”
Architectural changes can make it easier for extended families to share their lives without losing their privacy. “For example, a property that became known as the Three Sisters House in Islip, New York, involved dividing up a large home owned by one sister after the death of her spouse,” Smith says. “Each sister had her own space, and another portion became a space they shared.”
This property in Avon, Colorado, is perfectly positioned for winter sports enthusiasts.
LIV Sotheby’s International Realty
Beware financial pitfalls
As is common for most luxury transactions, homebuyers of multigenerational properties often pay in cash. What is different, though, is the need to determine how to divide responsibilities for the property—such as taxes, insurance and maintenance costs—if the house is owned by multiple generations.
“Financing can present hurdles, since arrangements can become complex when multiple generations are involved, often requiring unconventional banking services,” Aoki says. However, most high-net-worth homebuyers already have financial and estate planning advisors, often with an established trust, who can help navigate financial agreements. After a purchase in the U.S., homeowners can transfer the property to the trust with a “quitclaim deed,” a legal document used when transferring property without a sale.
The future of multigenerational living
As family ties are becoming increasingly valued and the population ages, interest in multigenerational living should continue to be strong. In the U.S., as more states and municipalities relax zoning laws regarding ADUs, more properties could be candidates for this type of housing. Maine recently adopted new regulations regarding ADUs on single-family properties, which “creates valuable opportunities for homeowners to expand their living spaces,” says Wendland.
In Brazil, Victorino says developers who recognize the demand for premium infrastructure with flexible multigenerational use will be at the forefront of a constantly evolving market, where luxury, convenience and a connection to nature define a new concept of home.
Although comprehensive statistics for Japan are limited, since many multigenerational homes are custom-designed and rarely appear in public listings, Aoki believes the overall trajectory is evident. “Compared to 10 years ago, demand has grown significantly, especially among affluent families seeking properties that can serve as lasting legacies,” he says. “In response, developers are introducing dedicated projects tailored to this niche.”
In today’s evolving landscape, the intersection of rising housing costs, more expensive eldercare and shifting family dynamics have created a sustainable market for luxury multigenerational properties. For affluent families, these purchases represent more than a lifestyle choice—they are strategic investments that address multiple financial objectives while creating space for the family to thrive across generations.
Whether they are for vacations with extended family or year-round living, multigenerational homes offer the chance to deepen family connections and create a lasting real estate legacy.
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