Update, September 2026: The affordability pressures behind this trend have only grown. NAR's 2025 Profile of Home Buyers and Sellers found first-time buyers fell to a record-low 21% of all purchases, and the median first-time buyer is now 40 years old. For many families, pooling resources is one of the few realistic paths to ownership.
According to the National Association of Realtors (NAR), 17% of recent homebuyers chose a multi-generational home, one shared with parents, adult children, or even extended family members. That's the highest level NAR has ever recorded, prompting questions about what's driving the trend.
Why Families Are Buying Together
Traditionally, families chose multi-generational homes to simplify caring for aging parents. While that remains a significant motivation, affordability has emerged as a key driver in today's market.
Recent NAR data show that cost savings now tops the list of reasons buyers choose to live with family, cited by 36% of multi-generational buyers, up from just 15% a decade ago. More buyers also point to adult children moving back home (21%) and adult relatives who never left (20%). Rising homeownership expenses have made it increasingly difficult for some people to buy on their own, leading more families to pool their resources and share costs, such as the mortgage and utility bills, to make homeownership feasible.
Housing economist Rick Sharga, founder and CEO of CJ Patrick Company, has pointed to buying with a family member as one of the few ways to improve affordability, noting that the growing number of multi-generational households across the country is partly a response to affordability.
More Space, Stronger Bonds
This approach may also allow buyers to afford a larger home than they could manage on their own. If today's prices and interest rates have made a bigger property seem out of reach, buying with family might help you secure the additional space you need.
Beyond the financial advantages, living under one roof can foster stronger family bonds and increase the time you spend together.
Making It Work in Santa Barbara
Here on the South Coast, where prices are among the highest in the country, multi-generational living is often about the layout as much as the budget. Look for:
- Homes with a guest house or ADU that give each generation its own entrance, kitchen and privacy. California law makes it easier than ever to add an accessory dwelling unit or junior ADU to an existing home.
- Single-level living or a main-floor bedroom suite for older family members.
- Clear ownership and financing plans. When family members buy together, talk to a lender about co-borrowing and to an attorney or title professional about how to hold title before you make an offer.
If you're contemplating a move but find your budget stretched thin, a multi-generational home could be a practical solution, providing both affordability and the added benefit of closer family connections. I'm happy to help you find a property that works for everyone: call me at (805) 607-9709.
Curtis Swan II
(805) 607-9709
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