Multigenerational houses in demand for cost savings, family needs

Ruth Taller's home in Seaview, on Fire Island, has been in her family for generations. The house really comes alive when those generations all get together for some summer fun.

"They come out the last two weeks in June," said Taller, who is almost 90 years old. Her father built the house in 1963, and since then, her family — which includes two nephews, a grandnephew, cousins and more — confab at the five-bedroom home annually. "We have 14 people there, and that's a lot."

The neighborhood has changed over the decades. Large homes with spacious in-ground pools have overtaken modest bungalows, but the home remains a gathering place for her whole family — and many of them strong, sentimental feelings for the place, Taller said.

"Three generations have certainly used that house," she said.

So what happens when it's not just a summer retreat — and extended family want to live together full-time?

On Long Island, multigenerational homes have been on trend since the pandemic, when many young adults had to live with their families longer than planned or move back home. The era has also left a desire for housing that keeps extended families together, experts say. Both results have heightened the demand for multigenerational living situations, but this subset of buyers is feeling the sting of the fierce competition and dwindling options that has characterized Long Island's market for years.

At this point, multigenerational living is "not a trend anymore," said Jasleen Sabharwal, a Roslyn-based Douglas Elliman Real Estate agent: "It's a financial necessity for many Long Island families."

While homes with accessory dwelling units (ADUs) or the potential to build one are on the rise, there are not as many legal two-family homes on Long Island. And "unusually low levels" of inventory alongside homeowners who are "married to their [mortgage] rates" with no intention of moving are some of the factors impacting Long Island's market, said housing analyst Jonathan Miller. He sees the benefits of getting the whole family under one roof, if possible.

"It promotes community, and it's less expensive than buying two single-family houses," he said. "There's a certain affordability component to it."

Nearly 4 million owner-occupied homes in the U.S.

in 2024 were

multigenerational

according to the Multigenerational Housing Trends Report compiled by Realtor.com.

Across the country, 4.5% of owner-occupied homes, or nearly 4 million, were multigenerational in 2024, according to the Multigenerational Housing Trends Report compiled by Realtor.com. This means that the homes included three or more generations.

These houses come at a premium, hitting the market 65% higher in price and garnering 13.5% more page views than standard listings, the report shows.

Nevertheless, local real estate agents say, it's still possible for buyers to find homes that can fit the whole family, with flexibility and due diligence.

Family first

For families with kids growing up and seniors aging in place, multigenerational homes can be desirable for caregivers who fall in between those generations, and could use some extra support.

Beth Lowe, a real estate agent with Douglas Elliman in Babylon, is listing a legal two-family home in Hewlett for just under $1 million, with taxes of $20,695.

The house contains two sets of electrical panels, heating systems and kitchens under one roof, which differentiates it from a home with an ADU attached. This kind of property is "not that common on Long Island," Lowe said, but "a lot of buyers want to move a parent in with them."

Multigenerational living can provide assistance "whether it's for childcare or even sometimes eldercare," said Robin Simon, a real estate agent with Berkshire Hathaway HomeServices Laffey International Realty in Williston Park. He has seen a slightly elevated interest in homes like this from his clients recently.

According to the 2026 Home Buyers and Sellers Generational Trends Report conducted by the National Association of Realtors (NAR), 41% of homebuyers purchased a multigenerational home for health and caretaking reasons, specifically for aging parents.

"I know some people always think about taking care of their kids, but sometimes, it's the other way around," Simon said.

The safety of aging in place must be considered while searching for these homes, said Jessica Lautz, who is the deputy chief economist and vice president of research of the NAR.

For example, "making sure that the stairs coming into the home are easy to traverse, thinking about wider hallways and doorways for walkers and wheelchairs and light switches that everyone can reach," Lautz said. "All of those things would have to be taken into account."

While helping a client look at one option for a multigenerational home, Sabharwal said her client brought in a contractor to see if it'd be possible to add an elevator, so their mother could access the second-level bedroom without having to take the stairs. The agent believes many homebuyers started to prioritize multigenerational living situations after the pandemic, as family bonds were put to the test and even strengthened.

"After COVID, a lot of people began to realize that family support is so important," she said. "They were able to use parents as childcare, and people were taking care of the elderly, so everyone kind of stayed close."

The pandemic also caused young adults across the country to shift their timelines when it came to homeownership: "We really saw a peak of young adults moving back or that never left their parents' house, due to COVID," Lautz said.

Sharing the costs

Cost sharing is another big driver that makes multigenerational living desirable for Long Islanders.

"If they're able to achieve a dream home, plus have childcare on their premises, it's the best setup," Sabharwal said. "There are two costs the buyer is fighting for: childcare and housing. So having a multigenerational home, they've taken both of the costs and combined them."

According to a 2024 market rate survey, the average cost of infant care per year on Long Island is $24,000 for a daycare center and $20,000 for a licensed home provider, for 30-plus hours a week. Babysitter rates are on the rise, too: Recent data from the website UrbanSitter shows the average cost of a babysitter for a child in the New York metro area is $26.03 per hour.

In multigenerational living situations, families can potentially save on childcare and share other housing-related costs, such as the down payment, mortgage, utilities and any maintenance the home might need. 

"Because the cost has gone up for everything, these homes offer a financial advantage, because they get to split all the costs," Sabharwal said.

Before a home purchase, conversations about cost sharing and the division of responsibilities should happen within family units, Lautz said.

"It may not just be financial, but perhaps helping with maintenance on a home," she said. "Younger family members may be more apt to do that, or popping out for groceries where an older family member may not be able to do things as easily."

Median sale price

of a single-family home reached

$849,000 in Nassau

and

$700,000 in Suffolk

The need for cost sharing in home buying is being driven by the market, Sabharwal said. In March, the median sale price of a single-family home reached $849,000 in Nassau County and $700,000 in Suffolk, per OneKey MLS data. Around this time, Long Island's inventory of homes on the market hit its lowest level in more than a decade, the multiple listing service also reported.

The NAR's report on generational trends also shows that 29% of multigenerational homebuyers cited cost savings as their reason for the purchase. And there's also an opportunity for earnings: Lowe said these kinds of homes can attract not only buyers looking to house family members, but also Long Islanders looking for rental income.

"I wish there was more inventory," Simon said. "A lot of great, well-qualified buyers still can't match up."

Making it work

Finding a multigenerational home on Long Island is difficult, but not impossible, said Simon. He recommends selecting the "multifamily" option while browsing listing sites like OneKey MLS or Zillow.

But prospective buyers should still make sure they "do their due diligence" when it comes to these homes, and ensure "all permits and COs are in place," Simon said, without just taking those at the other end of the purchase at their word. The code violations and safety risks that could follow will pose challenges for homeowners.

Expanding the search to include other kinds of houses that can handle large families or have potential for expansion is another strategy, Lowe and Sabharwal said.

"My advice would be to look for a high ranch, because it definitely lends itself the most perfectly to the situation," Lowe said. "What I do hear a lot is, ‘We don't want to put mom in the basement.' So the high ranch really gives you the flexibility to have them on a ground level."

Lautz believes multigenerational housing will be a "growing trend," particularly for younger buyers. The NAR report shows that 55% of buyers between ages 27 and 35 cited cost savings as the reason for their multigenerational home purchase.

"There are a lot of young adults who really do want to come into homeownership, and so they're taking creative approaches to find their way into the equity game," she said.

As for available options on Long Island's market, Sabharwal is currently listing a five-bedroom, three-bathroom home in Deer Park. Such homes tend to draw in families looking to live together, she said.

"Hunt for homes that are larger," Sabharwal advised. "This way, even if young ones want to grow their family, there will be enough room. A bigger home is better, with a bigger backyard and of course a nice, open layout for the kitchen."

Most of Sabharwal's clients are looking for these kinds of living situations. And in Long Island's competitive market, this approach is the most logical for many hopeful homebuyers.

"Having a grandma down the hall means the kids are looked after, and grandma isn't alone, either," Sabharwal said. "I think it's a lifestyle decision, as well as a financial one."