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Why More Millennials and Gen Z are Embracing Multigenerational Households

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Remember when the gold standard of “adulting” was moving out at 18, getting a job, renting your own place, and eventually buying a house with a white picket fence? Yeah, that dream’s gotten a little hard to achieve.

Between sky-high rent, stagnant wages, and the overall shift in how we view independence and success, more millennials and Gen Z are staying home longer or even moving back in with family permanently. And honestly? It might be one of the smartest financial moves you can make right now.

Let’s break down why this trend is growing, how it can actually work in your favor, and how to make multigenerational living work without going crazy.

What is Multigenerational Housing?

Multigenerational living is exactly what it sounds like: multiple generations living under one roof. Think you, your kids, your parents, and maybe even your grandparents all sharing a household. 

This setup used to be super common pre-1950s, but zoning laws and the whole suburban dream kind of pushed it aside. Fast forward to 2025, and it’s coming back strong, and not just out of necessity, but sometimes by choice.

Why More Millennials and Gen Z are Opting In

Here’s why more of us are embracing multigenerational living, and maybe we should be encouraging it instead of feeling awkward and pushing past the stigma of being a “bum.”

Shared Costs = Real Savings

Splitting rent, groceries, utilities, and internet with the family definitely beats paying $2,300+ a month in a small city apartment by yourself. Sharing costs will also give everyone a chance to build their own wealth without spending an entire paycheck on just rent.

Built-in Support System

Whether it’s free babysitting while you jump on a Zoom meeting or having someone around to help aging parents, living together makes caregiving a lot more manageable and affordable. You don’t need to outsource everything when the family’s right there.

I like Sarah Ahn’s take on why she’s still living at home as it resonates with me on wanting to take care of my own parents:

Better Mental Health + Family Connection

Sure, personal space is important, but having loved ones nearby can also make life feel a little less overwhelming. If the pandemic 5 years ago taught us anything, it’s that connection really matters. Living under one roof gives you more time to create memories and the ability to support one another daily.

Is Multigenerational Living the New Normal?

Honestly? It’s looking like it.

The brutal knockout combo of rising housing prices, inflation, caregiving needs, and shifting values around community is making multigenerational living more of a solution instead of a “last resort.” Some families are remodeling their homes or adding ADUs (accessory dwelling units) to accommodate the setup long-term and to give extra privacy to members.

The Money Move

Multigenerational living may not have been in your original “adulting” plan, but in today’s economy, it’s a smart option. You save money, build deeper family connections, and create a more supportive home environment, all without the pressure of having to “go at it alone.” 

If you’re currently living with family or even thinking about it, don’t stress. It doesn’t mean you’re failing. It might actually mean you’re ahead of the curve when you can save more and be physically/mentally supported!