Three or More Generations Can Share the Same Family Home and Be Happy

In recent decades, multigenerational living has grown in popularity. It’s a trend that’s quadrupled since the 70s with especially pronounced growth over the past few years; today, more than a quarter of Americans currently live in a multi-gen household.

Multigenerational living can be a great solution for all types of families. For adults with small children, it may offer the chance to avoid high daycare costs. For elders, it may mean the ability to save on healthcare expenses. And for young adults just starting out, it may mitigate the crushing burden of student loans, unobtainable mortgages, and low wages.

Multigenerational homes offer a number of financial and emotional benefits. And studies indicate that this lifestyle works successfully for the vast majority (98 percent!) of those who choose it.

About Multigenerational Living

What is multigenerational living? Simply, it’s a household that’s home to a blend of parents, grandparents, kids, grandchildren, and other relatives.

Multi-gen households may take several forms, such as:

• Three-generations: working adults living with their children and aging parents.
• Two-adult households: parents living with their adult children, and adult children who take in their aging parents.
• Grandfamilies: older adults living with minor grandchildren.
• Four+ generations: great-grandparents, grandparents, adult children, kids, and/or grandkids living together.

Multigenerational living isn’t new. In many cultures and periods of history, multiple generations of family under one roof was the norm.

And with more than 66 million Americans currently living in a multigenerational household, it’s more common than you might think, especially in recent years. Surveys indicate that the COVID-19 pandemic was a major impetus for many people to move in with extended family. It was so successful that 70 percent of those surveyed plan on multi-gen living for the long term.

Benefits of Multigenerational Living

Research indicates that financial benefits often drive the switch to a multi-gen household. When housing markets are tight and interest rates are on the rise, combining households with family members can make a lot of financial sense.

For example, adults age 18 to 34 may live with their parents in order to save money on rent or a mortgage while they’re starting out in life. Some may help with bills, while others take the chance to save. Working adults with young children may welcome in-home childcare with grandparents as an alternative to pricey daycare.

Multi-gen living offers a number of benefits for aging adults, too. As healthcare and long-term care costs continue to rise, elders and adults who need assistance can benefit financially from living in a family household.

Then there are the emotional benefits. Multi-generational living can positively impact mental and physical health for older adults. It’s also a great opportunity to develop strong bonds with family members. And multi-gen households can give family members the freedom to pursue educational or career opportunities that may otherwise be constrained by financial or childcare responsibilities.

Preparing for Multigenerational Living

Multi-gen living offers many potential benefits. To take advantage of the opportunity fully and avoid potential pitfalls, communication and planning are key.

Families should have open conversations about issues that may arise, such as:

• Merging financial portfolios and joint property ownership.
• Who handles mortgage and tax bills.
• Estate planning.
• Privacy concerns.
• Remodeling for accessibility.

The financial and economic impacts of combining households can be complex. It’s usually best to consult with a professional for financial and tax advice.

Emotional considerations must also be considered. Plan ahead by ensuring that boundaries are in place, recognizing the need to navigate cultural and generational differences, and providing space all family members can call their own.

As the costs of housing, healthcare and childcare continue to rise, more Americans may well choose multigenerational living. With a bit of planning, a multi-gen household can offer a host of benefits to all kinds of families.