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Earlier this year, Boston-area real estate agent Pearl Emmons helped a former client purchase a new home. The couple, grandparents in their 70s, had decided they wanted to move closer to their daughter and growing family.
Much closer.
The two couples eventually purchased a duplex together in Somerville, Massachusetts. Grandma and Grandpa live on the ground floor, and their daughter, son-in-law, and two young adults live on the top floor.
Emmons said grandparents often provide child care for young children, and being so close makes interaction much easier. She added: “I think it’s great for people who have elderly parents to be able to be there for support.”
As the cost of living and housing rises, Americans are increasingly choosing to live with other generations of their family. As Emmons’ clients demonstrate, the factor of caregiver convenience is at play. It stands to reason that cutting down on transportation costs can also save you money.
However, recent analysis shows that multigenerational homes are often significantly more expensive than standard real estate. Nevertheless, its growing popularity suggests that other benefits make it valuable for many families.
The report, released May 5 by Realtor.com, estimates that there will be 4 million multigenerational households in 2024, accounting for 4.5% of all homeowner households. This is a slight increase from the pre-pandemic 2019 share of 4.3%.
The report defines “multigenerational housing” as properties whose descriptions include keywords such as “guest house,” “in-law suite,” or “granny apartment.”
Realtor.com does not include duplexes, triplexes, or other similar homes that Mr. Emmons helped clients purchase. This is because data about these properties is not tracked in a uniform way. This suggests that if such arrangements are taken into account, multigenerational housing could become much more prevalent than highlighted in this report.
Our analysis shows the median list price for multi-generational homes on Realtor.com., The stock price in 2025 was $709,000, about 65% higher than the standard listing median price of $429,900. While multi-generational homes are typically larger, they are also more expensive at the most basic level, costing $262 per square foot compared to $215 per square foot for a standard home.
This extra cost may be because multigenerational homes include specialized features such as in-law suites, additional kitchens, and multiple entries, the report notes. But even with a higher price tag, multi-generational properties received 13.5% more page views and sold in the same time period than standard homes.
But in real estate, everything is local. In Somerville, a small city where large families buy, Emmons said he frequently advises clients that duplexes are much cheaper per square foot and may be a bargain too untapped.
On the other hand, she added, this may be because such properties typically have deferred maintenance and need more TLC before families can move in.
The capital invested by the family may be worth it. “A shared sense of purpose and care are at the heart of multigenerational living, a housing arrangement that is quietly shaping American family life,” said Hannah Jones, senior analyst at Realtor.com, in a release.
