According to the National Association of Realtors, Gen X consumers between the ages of 46 and 60 are the primary demographic driving this change, with a slight drop in their overall share to 19 percent from 21 percent the previous year. A survey by Veterans United Home Loans found that 36 percent of Gen X voters intend to purchase a multigenerational home, the highest frequency among all generations. Approximately 18 percent of these buyers already have an adult child living at home.
The shift is largely motivated by financial necessity and caregiving responsibilities. The NAR identifies the need to care for elderly parents, reduced housing prices, and space for adult children as the chief causes. Sharing a household allows multiple incomes to cover joint bills such as mortgages and utilities, providing financial stability for both older parents and younger adults.
Buyers are increasingly seeking specific architectural features that facilitate privacy within a shared home. First-floor bedrooms, finished basements, and distinct living spaces have become essential criteria rather than optional amenities. A Thumbtack study of over 100 renovation experts identified multigenerational aspects, such as separate suites for extended family, as the most anticipated design trend for 2026, surpassing new kitchens or outdoor living spaces.
Cost considerations are influencing buyer decisions. ISI Construction estimates that a complete room addition costs between $100 and $200 per square foot, while interior decorations alone can range from $20,000 to $60,000. Consequently, many buyers prefer homes with existing convertible basements or accessory dwelling units, as the foundation and framing are already in place. Redfin agent Kellie Martinez noted that accessory dwelling units remain in high demand due to their flexibility for family use and rental opportunities.
Local market trends reflect this demand. Bryan Karp of Coldwell Banker American Homes reports that high ranch homes in Ronkonkoma are increasingly popular because their design allows for independent apartments on lower levels. Similarly, homes in Smithtown, NY, with walkout basements are seeing strong interest. In Wantagh and Massapequa, contractors like Praiano Home Improvements are adding mother-daughter suites with independent kitchenettes, separate climate zones, and distinct entrances, effectively creating a second, smaller home within the property.