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Exploring the rising demand for multigenerational homes

What started as a return to tradition is now shaping the future of how families live. Multigenerational homes are more popular than ever. As more households live under one roof, luxury home design is evolving to fit multigenerational living with comfort, style, and connection in mind.

Here’s why demand is growing and why this type of living might be right for your family, too.

WHAT IS MULTIGENERATIONAL LIVING?

Multigenerational living is exactly what it sounds like: a household where two or more adult generations live together under one roof. That could mean parents living with their adult children, adult siblings sharing a home, or a grandparent suite just down the hall from the nursery.

It’s not a new idea. In fact, it’s how most of the world has lived for centuries. What’s new is how fast this living arrangement is catching on again in the United States.

Why multigenerational homes matter now

Across the globe, multigenerational households are becoming more common—and not just out of necessity. While financial factors like rising housing costs and eldercare expenses play a role, the desire for stronger family bonds is a driving force.

It’s not just younger generations moving back home; retirees are choosing to age in place surrounded by family and parents are finding comfort in daily help from grandparents. Across the board, families are prioritizing connection over convenience, and luxury home design is quickly evolving to support that choice.

The numbers behind the shift

Multigenerational living is no longer just a practical solution. It’s becoming a conscious lifestyle choice among high-end buyers. In 2024, 17% of all home purchases were made with multigenerational living in mind—the highest share ever recorded by the National Association of Realtors. More and more, these aren’t just practical homes. They’re luxury properties designed to offer comfort, privacy, and style for every generation.

Younger adults are a major driving force behind this trend. Nearly 1 in 3 Americans aged 25 to 29 live in a multigenerational household, with men in that age group reaching 37%. For many families, pooling resources is about investing in a home that really works for everyone.

In luxury real estate, the idea of a “dream home” is changing. Privacy still matters, but so do connection, shared moments, and the ability to adapt over time.

THE BENEFITS OF LIVING IN A MULTIGENERATIONAL HOUSEHOLD

A multigenerational house is designed to make shared living easier and more enjoyable. Here are some of the top benefits families enjoy when generations come together under one roof.

  • Stronger family bonds

    Living under one roof makes it easier for families to connect. Studies show that multigenerational living can boost mental health, especially for seniors who might feel lonely otherwise. For younger family members, it helps build confidence and a strong sense of identity.

  • Caring for family members made easy

    Caring for aging parents or young kids can be a lot to manage. With a multigenerational home, support is built right in, with family close by to help with things like school runs or health needs. Luxury multigenerational homes often have features like private suites, main-level bedrooms, and accessible bathrooms that make looking after family members easier while still respecting everyone’s privacy and independence.

  • Smarter finances and shared costs

    When families share costs like utilities, groceries, and upkeep, there’s more room in the budget for other important goals like travel, education, or building long-term wealth. For Baby Boomers, it can mean skipping the high cost of senior living. For Gen Xers, it helps ease the pressure of big expenses like college and mortgages. And for adult kids, it’s a smart way to save for the future while pitching in at home.

  • Shared responsibility

    Running a household is no small feat, but in a multigenerational home, you’re never in it alone. And with more hands on deck, it frees up time so you can focus on enjoying each other instead of constantly managing logistics.

  • Higher resale value
  • With more people choosing multigenerational living, homes that offer flexible layouts like in-law suites, separate kitchens, and private entrances are in high demand. These features appeal to a wide range of buyers, from families caring for aging parents to adult kids moving back in, or even those looking to rent out extra space.

  • Tax advantages and estate planning

    Living together can also help with financial planning. Older homeowners might use it to give home equity, lower their taxable estate, or set up a clear inheritance plan—all while staying close to loved ones.

DESIGNING A MULTIGENERATIONAL LIVING SPACE

Privacy matters in a multigenerational living space. Every generation needs their own space, whether that’s a private suite, a separate guest house, or an in-law apartment with its own entrance. At the same time, the spaces for bonding are just as important as the spaces for rest. Open-concept kitchens, spacious entertainment rooms, and inviting outdoor living areas bring the family together without sacrificing comfort or independence.

When designing a multigenerational living space, there needs to be a balance between shared and private spaces, functionality and beauty, and present needs and future growth. That might mean integrating accessible features for aging parents, carving out quiet workspaces for remote professionals, or designing kid-friendly zones that can evolve over time. Every decision, from floor plan to finish, should support both daily life and long-term flexibility.

Private retreats within a shared home

Designing for multiple generations starts with understanding that privacy isn’t a luxury—it’s a necessity. Upscale multigenerational homes prioritize individual retreats that allow family members to decompress, work, or simply enjoy quiet time. In some cases, interior rooms can be accessed via exterior courtyards by letting residents enjoy serenity without feeling disconnected from the main household.

Designing for connection

Of course, multigenerational living isn’t just about separation. Families thrive when they have spaces to gather, cook, laugh, and create memories together. That’s why luxury homes are embracing expansive communal spaces such as oversized kitchen islands for family meals, open living and dining areas that flow effortlessly, and central courtyards that draw people in. The goal? To encourage organic togetherness without stepping on each other’s toes.

The power of flexible floor plans

Every family evolves and so should the home. Flexibility is non-negotiable in multigenerational luxury design. Homes with flexible rooms, like ones that can be used as a bunkroom, guest suite, or office, are especially useful. Layouts with two main bedrooms, split levels, or separate wings make it easy to adapt as needs change.

Some homes are built with future needs in mind, like space for an elevator or room to add a guest unit. Whether you’re raising kids, welcoming college students home, or caring for older parents, a flexible layout helps your home grow with you.

Accessibility without sacrificing style

Designing for multiple generations also means making sure the home works for all abilities while still keeping the home’s aesthetic. Today’s luxury homes incorporate accessibility seamlessly by using features like walk-in showers without steps, wider doorways, easy-to-use handles, and smooth entries.

Expanding the outdoor space

Luxury isn’t just about what’s inside. For multigenerational families, outdoor spaces matter just as much, since it often serves as extensions of the home’s personality. Courtyards, patios, balconies, and gardens create room for both quiet moments and family time. In some multigenerational houses, families get to enjoy double porches, backyard firepits, and even garage apartments with breezeways, proving that every inch of the property can be optimized for comfort and connection.

High-end finishes, smart home technology, and designing for comfort

When designing for multiple generations, the little things matter, too. Built-in storage, custom cabinets, and spa-like bathrooms make daily living feel special. And smart home features like individual controls for lighting, temperature, and security help everyone feel at ease in their own space. Shared spaces like home theaters, game rooms, or wellness areas also bring the family together while still allowing each person to enjoy what they love.

BUILDING AN ADU IN BEVERLY HILLS

If you’ve been thinking about expanding your home in Beverly Hills, building an ADU (accessory dwelling unit) might be one of the most flexible and future-ready investments you can make.

As multigenerational living becomes more common across the U.S., ADUs are helping Beverly Hills families bring generations closer together. These small but mighty living spaces offer peace of mind and connection under one roof—or just a few steps away from it.

What is an ADU?

An ADU is a fully independent living space built on the same lot as your primary home. It includes its own sleeping area, kitchen, and bathroom. ADUs can be attached to your main home, converted from a garage or basement, or stand alone in your backyard. In Beverly Hills, the city recently updated its regulations to make ADU construction more accessible than ever, especially for multigenerational use.

New updates to the Beverly Hills Municipal Code include:

  • More flexibility for ADUs on multifamily lots
  • Increased allowable size and height (up to 1,200 square feet and 24 feet tall)
  • The option to build an additional ADU on single-family properties over 13,000 sq. ft., as long as one unit is deed-restricted as a rental

Why build an ADU for multigenerational living?

The benefits of an ADU go beyond just square footage. When designed well, an ADU can be a great solution to the many challenges that come with multigenerational life. You might use it as:

  • A private space for elderly parents who want independence but still need support
  • A landing pad for adult kids transitioning between school, careers, or big life changes
  • A place for live-in help, such as a caregiver or nanny
  • Even your own downsized home, while another generation enjoys the main house

What makes ADUs stand out in Beverly Hills is how they offer upscale comfort in a smaller, well-designed space. You can include features like vaulted ceilings, luxury bathrooms, energy-efficient appliances, and even outdoor patios or gardens.

Building an ADU can also be a strategic long-term investment. In a 2021 study by the National Association of Realtors, it was found out that adding an ADU can increase a property’s value by 35%. This boost in value—combined with the potential for steady rental income—makes ADUs an appealing option for homeowners looking to maximize both equity and cash flow over time.

And yes, your ADU can be rented out, as long as the lease is for 31 days or longer.

Regulations and what you need to know

Beverly Hills has made great strides in aligning local regulations with the state’s push for more flexible housing options. Here’s what to expect:

  • ADUs are allowed on any residential or mixed-use property with an existing or proposed dwelling
  • There’s no minimum lot size required
  • Maximum sizes vary: up to 1,000 sq. ft. for detached units, and more for multifamily lots
  • Setbacks are generally 4 feet from side and rear property lines
  • Most attached or detached ADUs require one parking space (unless exempt)

FIND THE RIGHT HOME FOR YOUR FAMILY’S NEXT CHAPTER

From flexible floor plans to high-end amenities, multigenerational homes are reshaping what it means to live well, together. Whether you’re planning for aging parents, supporting adult children, or just after a home that brings everyone closer, the right space can make all the difference.

Ready to find a luxury home in Beverly Hills, California for sale that fits your whole family? Let a top-producing Beverly Hills luxury Realtor like me, Joyce Rey, help. With decades of experience in Beverly Hills luxury real estate, I understand that finding the right multigenerational home goes far beyond square footage. It’s about creating a space that flows well, offers privacy when needed, and meets the needs of every generation under one roof.

Get in touch with me today at 310.291.6646 or via email to start looking for the right Beverly Hills, CA luxury home.

Joyce Rey
Joyce Rey
Joyce Rey

Joyce Rey is one of the most respected names in luxury real estate worldwide, having represented some of the most significant properties in the world.

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