Thinking about a multigenerational home? The growing trend has its pros and cons.

Key takeaways 

• A growing share of buyers are choosing to live in a multigenerational household to save money, care for aging parents and support adult children who’ve moved back home.
• Shared housing can lower per‑person housing costs, strengthen family bonds, improve childcare support, and even boost longevity, but families need upfront agreements on finances, chores, privacy, and how home equity will be shared. 
• Reduced privacy, increased housework, family tensions, remodeling costs, zoning limits and senior retrofits can create stress and legal complications, making professional advice and clear household rules essential before moving in together. 

Multigenerational living is becoming a more common housing choice as families look to cut costs and care for loved ones under one roof.  It offers clear benefits, but it also comes with trade-offs.
Here are some of the most important pros and cons. 

Multigenerational housing is a growing trend, said Rodney Harrell, vice president of family, home and community at the AARP.

The U.S. population is aging, he said. By the end of the 2020s, one in five Americans will be age 65 or older, according to figures from the nonprofit advocacy organization for people age 50 and older. In the next 10 years, there will be more people over age 65 than under age 18.

Rising housing and overall inflation are also pushing more people to consider multigenerational housing.

In 2024, 17% of homes purchased were intended for multigenerational households, up from 11% in 2021, according to a National Association of Realtors survey.

Buyers cited several reasons for choosing the arrangement. About 36% pointed to cost savings, while 25% said they wanted to help care for aging parents. Just over 21% said adult children or other relatives had moved back home.

Combining multiple generations in a household can help homeowners in several ways.

• Mortgage payments or rent are typically lower per person when costs are shared. Other shared expenses may include utilities, food, maintenance, décor, property taxes, insurance and homeowners association fees.  
• Sharing expenses can help younger adults build savings or pay down debt. It may also give them time to improve their credit and save for a down payment. 
• Having multiple adults with income and assets can increase the chances of qualifying for a mortgage or refinance — and may allow borrowers to qualify for a larger loan.  However, lenders generally underwrite loans using the lowest credit score among applicants. Before applying, everyone’s credit should be in good shape.

Additional adults in the home, particularly grandparents, can help care for young children. Grandparents may also provide stability during a divorce by offering undivided attention and support when single parents feel overwhelmed. 

Living together can strengthen relationships across generations. Children who have active relationships with grandparents tend to experience fewer behavioral and emotional problems.  

Grandparents can be especially important in the lives of children with divorced parents. At the same time, living with children and grandchildren can reduce loneliness for older adults and enrich their daily lives. 

As mortgage payments are made over time, equity builds. Equity is the difference between a home’s value and what is owed to the lender, and it can be accessed through refinancing or selling the home. 

Household members who contribute to mortgage payments should have a written agreement with the borrower listed on the title and mortgage. The agreement should outline how equity will be prorated when the home is sold or refinanced. It should also address major life events such as death, illness, or divorce. Consult an attorney for professional advice on these issues before you start a multigenerational home.

A recent National Institutes of Health survival analysis found that healthy members of multigenerational families had lower rates of premature mortality and were more likely to live longer. 

One possible reason is increased emotional support. Having more adults in the household may encourage feelings of stability, wellness and connection. 

Dividing chores among adults and older children can reduce stress and workload. 

For example: 

• Grandparents can help with school pickups or babysitting.  
• Parents can manage bills and household finances.  
• Children can clean their rooms and help with outdoor tasks such as mowing, raking or shoveling snow.  

If you are listed as a co-owner on the title and a co-signer on the mortgage and you paid interest on a loan secured by the home, you may be able to deduct the amount of interest you paid. That might affect your eligibility for government programs such as Medicaid, Medicare and Social Security. Consult with a legal professional for guidance before setting up a multigenerational home.  

For more information, see IRS Publication 936, Home Mortgage Interest Deduction. 

Many grandparents feel safer living with family. Their presence also means someone is often home during the day, when many burglaries occur. 

With more people under one roof, personal space is limited. 

This adjustment can be especially difficult for grandparents or young adults accustomed to living alone. Privacy concerns can be eased by designating personal spaces and setting simple rules, such as knocking before entering bedrooms. Noise is another concern, along with potential parking shortages. Discuss these issues with the family before they move in.  

More residents mean more dishes, larger laundry loads and more frequent cleaning. House rules may require everyone to clean up after cooking or put away toys. Chores such as cleaning bathrooms, kitchens and common areas may need to be rotated. 

Even close relationships can become strained when people live together. 

Common sources of conflict include finances, parenting styles and household responsibilities. These issues should be discussed — and agreed upon — before moving in together. 

Another issue is when a living situation becomes impossible due to abuse, addiction or other problems affecting the family. It’s also possible that a family member may be unable to afford their share of the mortgage because of sickness or loss of work. Local laws vary as to the rights of family members living in a household. Consult with an attorney about possible scenarios that could arise.

Even newer homes require updates over time. 

A new baby or additional resident may require renovations or added space. Costs should be shared fairly, and projects should be scheduled to minimize disruption. 

Keep in mind that altering a home with a remodeling project or addition may require building permits and inspections from the local government. It may also be prohibited by zoning laws that regulate the number of persons who can live in the home. A licensed contractor can help determine your legal liability before starting work. An attorney experienced in local codes and laws can also evaluate your situation, saving you money and time on future expenses.

Homes may need modifications such as walk-in tubs or stair lifts for aging grandparents or people with disabilities. 

If these needs were not planned for in advance, the household should develop a plan that addresses financing and scheduling the work.

This story was updated May 7, 2026.