Multi-generational Homes as a new market in Luxury Real Estate

According to the National Association of Realtors®, 17% of homebuyers in 2024 purchased multigenerational homes, the highest share since the trend has been tracked. That’s up from about 11% just a few years earlier, a steep rise that reflects shifting economics, family dynamics, and lifestyle priorities. 

These buyers are not all one type of household. Some are couples bringing parents into their household for care; others are families pooling resources because it’s more affordable than maintaining separate homes; and some are traditional extended families choosing to live together by choice. 

Projections indicate continued interest: recently nearly 28% of prospective buyers in said they plan to purchase a multigenerational home, illustrating long-term momentum. 

Who’s Driving Demand?

While multigenerational living spans generations, some groups are more active:

• Gen X (ages ~45–59) leads the trend. NAR data shows about 21% of Gen X buyers choose multigenerational homes, nearly double the share they held a decade ago. Many are managing care for aging parents and supporting adult children simultaneously. 
• Baby Boomers still participate (~15%), often motivated by caregiving roles or lifestyle preferences. 
• Millennials are part of the trend as well, though less so (~12% for households ages ~35–44). 

Affordability challenges continue to fuel this shift. As homeownership costs rise, pooling financial resources becomes an appealing strategy: 36% of multigenerational buyers cited cost savings as their primary motivation, up sharply from a decade ago. 

Importantly, this trend isn’t limited to the affordability segment of the market. In the luxury space, buyers are seeking thoughtful design features that support multigenerational living without sacrificing quality, amenities, or style. 

What Luxury Multigenerational Buyers Want

Luxury multigenerational buyers are not simply buying bigger homes, they’re buying smarter homes. Key features include:

• Flexible Layouts with Defined Zones - Luxury buyers want spaces that allow for both connected and independent living. Think first-floor in-law suites, separate apartments or wings with private entrances, and accessory dwelling units (ADUs). These spaces balance togetherness with autonomy. 
• Open yet Purposeful Design - High ceilings, open kitchens, and large common areas remain desirable, but so do distinct private retreatswhere different age groups can relax. 
• Work-and-Live Functionality - With multigenerational households comes varied work and lifestyle demands. Home offices, hybrid learning zones, and adaptable media/game rooms are now mainstream rather than extras. 
• Luxury Wellness and Accessibility - Features like elevators, wider doorways, and thoughtful lighting appeal to families with aging members, while spa-level bathrooms and outdoor wellness spaces appeal across age ranges. 
• Privacy + Shared Amenities - Separate outdoor areas, guest suites, and multiple living rooms allow families to coexist comfortably without feeling on top of one another—an especially important consideration at the luxury level. 

How Luxury Agents Should Serve Multigenerational Buyers

Growing demand means agents need to adapt their approach:

• Ask the Right Questions Early - Don’t just show big homes, instead ask how the family intends to use the spaces. Who needs privacy? Who needs proximity? Are caregiving roles anticipated? Knowing this helps match the right floor plan, not just the right price.
• Understand Functional Zones - Multigenerational living isn’t one size fits all. Be fluent in design elements like casitas with separate entrances, dual kitchens, and ADUs. Walk clients through howeach space functions for different generations.
• Highlight Value Beyond Price - These buyers aren’t just purchasing luxury real estate—they’re investing in family strategy and long-term quality of life. Emphasize durability, adaptability, and resale flexibility.
• Be Prepared with Financing and Tax Insight - Multifamily scenarios can have unique financing and estate considerations. Partner with lenders who understand intergenerational financing and educate clients early.
• Advocate for Smart Future Proofing - Luxury multigenerational buyers prioritize both lifestyle and legacy. Agents who help clients think ahead, to aging-in-place features or generational transition planning, stand out as trusted advisors.

Market Outlook: Growing Demand

Multigenerational home buying is not shrinking. It has grown from about 11% of purchases to 17% in 2024, and planning surveys suggest continued interest from nearly 30% of prospective buyers. 

In luxury markets, these trends are shaping new developments and renovations, with flexible design and intergenerational functionality now seen as market differentiators, not niche extras. 

About the Author

Jennifer Dixson Hoff is a luxury real estate advisor with Engel & Völkers Scottsdale, known for her client-first approach and deep understanding of market dynamics. With experience across strategy, operations, and high-touch service, Jennifer brings a consultative perspective to every transaction. She partners with discerning buyers and sellers who value insight, discretion, and long-term value creation in today’s evolving luxury real estate landscape.