With the rising cost of living, changing family dynamics, and a growing preference for shared living spaces, multigenerational homes are becoming an increasingly popular choice for families across the U.S. Whether you’re considering purchasing a home for aging parents, adult children, or extended family, there are several important factors to keep in mind.

In this guide, we’ll cover everything you need to know about buying a multigenerational home, from benefits and challenges to key features and financing options.

What Is a Multigenerational Home?

A multigenerational home is a residence where two or more generations of a family live under one roof. This can include:

  • Aging parents moving in with their adult children

  • Young adults living with their parents longer due to financial reasons

  • Families housing extended relatives such as grandparents, aunts, or uncles

These homes are designed to accommodate multiple households while providing enough space and privacy for everyone.

Benefits of Buying a Multigenerational Home

1. Cost Savings

Sharing a home means splitting mortgage payments, utility bills, and maintenance costs, making it a financially smart choice for many families.

2. Built-In Childcare & Elderly Care

Having grandparents or extended family members in the home can provide built-in support for childcare and elder care, reducing the need for expensive daycare or assisted living facilities.

3. Stronger Family Bonds

Living together fosters closer relationships, providing more opportunities for family bonding, shared meals, and emotional support.

4. Shared Responsibilities

Household chores, grocery shopping, and home maintenance tasks can be divided among family members, making daily life more manageable.

5. Increased Home Value

Multigenerational homes often have higher resale value, as demand for these types of properties continues to grow.

Challenges to Consider

1. Privacy Concerns

Living with extended family can sometimes be challenging due to differences in routines, personal space, and lifestyle preferences. Look for a home with separate entrances, private suites, or multiple living areas to enhance privacy.

2. Legal & Zoning Regulations

Some areas have zoning laws that restrict how many unrelated people can live in a single residence. Check local regulations before purchasing.

3. Financial Considerations

Financing a multigenerational home can be complex. You’ll need to decide whether to buy jointly with family members or finance it under one person’s name. Consulting a mortgage expert is recommended.

4. Home Design & Layout

Not all homes are suited for multigenerational living. Look for properties with:

  • Separate living spaces (in-law suites, basement apartments, guest houses)

  • Multiple bathrooms and kitchens

  • Accessibility features for elderly family members

Key Features to Look for in a Multigenerational Home

When searching for a multigenerational home, consider these features to ensure comfort and functionality:

Separate Entrances – Provides privacy for different family units
Multiple Kitchens or Kitchenettes – Allows for independent living spaces
Private Bathrooms – Reduces shared bathroom conflicts
Ample Living & Storage Space – Ensures everyone has enough room
Accessibility Features – Single-level layouts, wide doorways, and ramps for aging parents

Financing Options for Multigenerational Homes

1. Conventional Mortgages

If one person qualifies for the mortgage, a conventional loan may be the easiest option.

2. FHA Loans with Non-Occupying Co-Borrowers

FHA loans allow family members who won’t live in the home to co-sign the mortgage, making it easier to qualify.

3. Multi-Unit Mortgages

If you’re buying a duplex or triplex as a multigenerational home, you may qualify for a multi-unit mortgage, which allows for rental income consideration.

4. VA Loans (For Veterans & Active Military)

Eligible veterans can use VA loans to finance a multigenerational home with low or no down payment.

Buying a multigenerational home is a major decision that offers many benefits, from financial savings to stronger family connections. However, it’s important to plan carefully, considering space needs, privacy, legal requirements, and financing options.

If you're thinking about purchasing a multigenerational home, work with a real estate expert who understands these unique properties and can help you find the perfect fit for your family's needs.

Matt Witte strives to be the best realtor in Andover MA.

Any questions about real estate, reach out to Matt Witte Andover Realtor MA