Multi-generational households are on the rise, although these homes come with much higher list prices, with California leading in supply, according to a May 5 Realtor.com report.

Multi-generational households consist of three or more generations, according to the agency.

The report found that nearly 4 million households across the United States were multi-generational in 2025, accounting for 4.5 percent of owner-occupied homes, up from 4.3 percent in 2014 and 2019.

The national median list price for multi-generational homes was $709,000, about 65 percent higher than the $429,900 median for standard listings, partly reflecting their typically larger square footage.

Descriptions for these properties often include keywords such as “in-law suite,” or “guest house,” the report says.

“Multigenerational living is a meaningful force in the housing market,” Realtor.com senior economic research analyst Hannah Jones said in the report. “A sense of shared purpose and care is at the heart of multigenerational living, a housing arrangement that is quietly shaping American family life.”

Jones attributes the increasing demand for multi-generational houses to higher housing and child care costs, cultural traditions, and an existing stock of adapted homes that have made extended family living a viable option.

Jones noted that the demand for multi-generational properties is particularly strong in Western metros, with California registering the highest share of listings at 14 percent, compared with just 2.9 percent in the Midwest.

According to the report, all five of the top metros by multi-generational listing share are in California. Los Angeles commands the highest share at 23.7 percent, followed by San Diego at 22.7 percent, San Jose at 18 percent, San Francisco at 17.4 percent, and Riverside at 14.9 percent.

San Jose has the highest median list price for multi-generational properties at $2.05 million, followed by San Diego and Los Angeles at $1.41 million, and San Francisco at $1.29 million.

Prospective homeowners seeking this type of housing are often willing to pay 8.4 percent over a standing listing price in San Francisco, and 1.6 percent more in Los Angeles, the report says.

A similar Realtor.com report notes that many families are drawn to these properties because they offer a “step down” option for aging parents, who can move into a detached accessory dwelling unit to maintain their independence.

Still, some California families seeking top-tier neighborhoods pool their finances with parents or other family members to afford homes in areas with desirable school systems and other amenities.

Multigenerational housing is also attractive to international buyers, along with technology executives, who tend to host visiting family members for long periods.

“While the share of multigenerational households held steady over the past decade, the number of families choosing to live this way grew from 3.2 million to 3.9 million between 2014 and 2024, a sign that multigenerational living is becoming an increasingly common choice for American families as high housing and child care costs create strong reasons for co-living,” Realtor.com economist Jiayi Xu said in the report.