Multigenerational Living

Multigenerational living refers to people of different generations, whether related or not, living together. This can be in the same house. Or they can be living in close proximity in the same residential building or neighborhood. Ideally, multigenerational living situations provide opportunities for interaction and engagement across generations rather than simply proximity. When multigenerational living is intentional, it is associated with better health outcomes, decreased loneliness among older adults, and better educational outcomes among children. It is also associated with lower poverty levels and can lead to cost savings on items like rent and childcare.

Rates of multigenerational living have been increasing for decades, from a low in the 1980s. One reason is economic: With the cost of housing continuing to increase, multigenerational housing helps contain costs. Demographics have also been an important driver, with older adults creating more demand for multigenerational living. Immigration has also helped drive the increase. Immigrants from Latin American and Asian countries are more likely to live in multigenerational housing than the population as a whole.

According to the U.S. Census Bureau, approximately six million multigenerational households include three or more generations. Communities of color are more likely than white individuals to live in multigenerational households. An estimated 9 percent of Hispanic/Latino households, 8 percent of Asian households, and 7 percent of Black households are multigenerational, compared with just 3 percent of white households.

The private sector plays an important role in both building housing that can accommodate multiple generations and ensuring that safe financing options exist for this type of housing. Policymakers can reduce regulatory barriers to multigenerational living. For example, land-use and zoning restrictions can be changed to allow multigenerational housing to be built. For instance, accessory dwelling units (ADUs) are separate, independent housing units that are built on the same lot as an existing home (see also Regulatory Structure to Promote Market-Rate Housing Affordability). They can be attached or detached from the primary residence. ADUs can allow two generations to interact while continuing to preserve their own separate living areas. Some communities have put in place setbacks or other requirements that make it difficult or impossible to build ADUs. Removing these restrictions can help community members build appropriate intergenerational housing. Policymakers can also directly support intergenerational housing through grants, matching funds, loans, and other financial incentives.