The Great American Housing Trend: Why Three Generations Under One Roof is the New American Dream

I'm living this reality myself. Next month, my parents are moving in with me and my two teenagers. Before you start picturing some tragic "failure to launch" scenario, let me stop you right there. This isn't about anyone failing. This is about winning at a rigged game.

The Numbers Tell the Real Story

In March 2021, there were 59.7 million U.S. residents who lived with multiple generations under one roof, compared with 58.4 million in 2019. That's 18% of the U.S. population (Pew Research Center) who've figured out that maybe Grandma's chocolate chip cookies and built-in babysitting are worth more than whatever we're supposedly gaining by scattering across zip codes.

In the 1950s, only 21% of households were multigenerational. By 1980, that dropped to only 12% of households (Walden University). We basically spent three decades convincing ourselves that independence meant isolation, and that success looked like everyone living in separate boxes, preferably as far apart as possible.

67% of people cite finances as a major or minor reason to live with multiple generations. In an economy where a starter home costs more than some small countries' entire GDP, families started making financially intelligent decisions.

Meet the Sandwich Generation

Gen-X buyers, often referred to as "the sandwich generation" in the housing market, have increased their share of this market from 12% in 2013 to 21% today (National Association of Realtors).

That's us. The forgotten middle children of American generations, stuck between Boomers who bought houses for the price of a decent used car and Millennials who've been priced out of homeownership by a market that's lost all connection to reality.

We're called the "sandwich generation" because we're literally sandwiched between caring for aging parents and supporting adult kids who face an impossible housing market. 21% of multigenerational households exist because children over the age of 18 are moving back home, while an additional 20% of adult children never left (Good Housekeeping).

Good for them if you have the space. There's no shame in your college student sticking around while they're in school. Why should a 22-year-old go bankrupt renting some overpriced studio apartment when he can live at home, save money, and contribute to the household? Plus, you get tech support on demand. Everyone wins.

The Money Math Makes Sense

The homeownership rate for multigenerational households surpassed that of all other family household types in 2022 and now stands at 74.2%, exceeding the homeownership rate of other family households of 73.9% (Eye on Housing).

When you pool resources, wonderful things happen. Real median income for multigenerational households and other family households in 2012 were $63,643 and $62,633, respectively, with a difference of about $1,000. By 2022, this difference widened almost twelvefold to $11,778, with multigenerational households earning $103,501 and other family households earning $91,723.

Families living together aren't just surviving. They're thriving. While everyone else is choosing between groceries and gas, multigenerational households are building actual wealth.

According to NAR's report, 36% of homebuyers chose a multigenerational home to save money (Good Housekeeping). Sharing a mortgage payment between multiple income earners is more affordable than trying to carry it solo. Revolutionary concept.

The Global Perspective

While Americans spent decades perfecting expensive isolation, the rest of the world was watching us with genuine confusion.

Multigenerational households, either in the form of stem or joint family, are more widespread in Asia than in any other part of the world. In cultures where the family unit holds greater significance for collectivists compared to individualists, leading to stronger family ties in collectivistic cultures (Nature), they never fell for the "nuclear family in separate houses" marketing campaign.

In Africa, living with extended family is the norm. Across that continent, at least half of older adults live with extended family members. Meanwhile, Europe falls somewhere in the middle but still outpaces the US significantly. More than 70% of young adults, ages 18 to 34, live with their parents in Italy, Croatia, Greece, Serbia, and Portugal, while northern European countries like Sweden, Finland, and Denmark plunge to below 20% (Econlife).

North America, has the lowest co-residence with fewer than 15 percent of older adults living with extended family in the United States. In the U.S., we’ve really nailed the art of pricey solitude. While other countries are all about cozying up with the whole clan under one roof, we’ve turned independence into an Olympic sport. Who needs a multi-generational household when you can pay a fortune for your own little bubble? It’s like we’re saying, 'Thanks, but no thanks!' to family dinners in favor of solo Netflix binges. Who knew isolation could be so expensive?

We convinced ourselves that shipping Grandma off to a facility where she plays bingo with strangers was somehow more dignified than having her live with family. After working as an activity director in a local senior living home, I see it differently.

How We Built the Senior Care Money Machine

Before the 1800s, older adults were primarily cared for by their families. When it was needed and when it was possible, the community would help (Foxtrailmemorycare).

Then Big Senior Care happened. The federal government's involvement in nursing homes began with the passage of the Social Security Act of 1935, and by the 1960s, with guaranteed government payments, construction of nursing homes boomed during the 60s (SeniorLiving.org).

By decade's end, nursing homes had become big business. In 1966 there were less than a dozen publicly-traded nursing home chains. Three years later, in 1969, there were 58, and by 1970 there were 90. Today, 72% of nursing homes are now for-profit companies, and 66% of all nursing homes are now part of a corporate chain. Assisted living operators frequently report high profit margins, with many achieving returns of 20% or more. In smaller facilities, you can expect 75-80% profit margins(Assistedlivinginvesting)

Families were suddenly convinced that proper elder care required professional facilities. The boarding homes for the elderly were then converted into nursing homes in order to get those federal dollars. New facilities were constructed following a very institutional "hospital-like" design, not warm and home-like as the boarding homes had been myLifeSite.

The result? We created an industry that profits from family separation.

The COVID Reality Check

Then 2020 happened. According to a study from Generations United, Family Matters: Multigenerational Living is on the Rise and Here to Stay, 57% of people living in a multigenerational home say they started because of the COVID-19 pandemic, and 7 in 10 people say they plan to continue (Good Housekeeping).

Nothing like a global pandemic to remind people that having family nearby isn't a sign of failure. It's a survival strategy.

Where Families Are Choosing Each Other

Hawaii tops the list with nearly 38,200 multigenerational households out of around 494,000 total, a staggering 7.73%. This trend reflects a strong cultural tradition of family togetherness, especially among Native Hawaiian and Asian communities, as well as the state's notoriously high cost of housing.

California comes in second with over 807,000 multigenerational homes, ranking second. At 5.9%, the rate is well above the national average, largely driven by high property prices, especially in cities like Los Angeles and San Francisco.

In the South, we're holding our own. Georgia's 4.42% rate represents more than 183,000 multigenerational households. The state's Southern roots and emphasis on family values, along with a mix of urban and rural living conditions, contribute to extended families choosing to stay together under one roof (NationalWorld).

From 2014 through 2018, the number of multigenerational households in Georgia rose by 8.22%. We're not just talking about people who can't afford to move out. We're talking about families making strategic decisions.

My Reality Check

Next month, when my parents move in, we're not just saving money (though heck yes, we're saving money). We're gaining something that money can't buy: built-in support systems.

My mom will finally have grandkids around daily instead of just during scheduled visits. My kids will have grandparents who can share stories, help with cooking, and provide the kind of wisdom you can't get from TikTok. And I'll have backup when life gets overwhelming, which happens approximately every day when you're raising teenagers, working, and building a business.

Let's be real about the economics: Georgia's median household income is $74,664 (Georgia Demographics), but the poverty rate stands at 13.48% World Population Review. In a state where housing costs are climbing and real wages aren't keeping pace, sharing resources isn't just smart. It's necessary.

The Bottom Line

The multigenerational housing trend isn't a step backward. It's a step toward sanity. While the rest of the world maintained family connections, Americans bought into an expensive lie that independence means isolation and success means everyone living separately.

In many ways, we are coming full circle today on how senior living accommodations are designed, getting away from the sterile, hospital feel and readopting the home-like setting of the boarding house myLifeSite.

We're finally admitting what cultures around the world have always known: families are stronger together, both financially and emotionally. The American Dream doesn't have to mean American Isolation.

To all the families making this work, whether you're sandwich generation parents, adult kids saving for your own place, or grandparents contributing to the household: you're not failures. You're pioneers.You're proving that sometimes the smartest financial move is also the most human one. And in a world that seems designed to keep families apart and struggling separately, choosing to live together and thrive together is pretty revolutionary.

Of course, making multigenerational living work requires the right house. You need flexible layouts, multiple gathering spaces, and enough privacy for everyone to maintain their sanity. As someone who's spent years finding homes that actually work for real life, I've become an expert at spotting properties with multigenerational potential. Think separate entrances, main-floor master suites, bonus rooms that can become offices or bedrooms, and open floor plans that encourage family interaction without forcing it.

Whether you're looking for a sprawling McMansion with room for everyone to spread out or a more modest home with smart use of space, the key is finding layouts that can adapt as needs change. Some families want the formal dining room for big holiday gatherings, others prefer flexible spaces that work for aging in place or accommodating adult children who are smart enough to save money while building their careers.

Now if you'll excuse me, I need to go figure out where to put all of my dad's books. Apparently, retirement means "time to read all the classics I never had time for during my career."