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Multigenerational Homes Command Big Premiums as Demand Outpaces Supply

High housing plus childcare costs are driving demand for homes built to host multiple generations.

Overview

  • Realtor.com reports a 65% national price premium for multigenerational listings, with a $709,000 median asking price versus $429,900 for standard homes.
  • Even at similar sizes, these properties list for more at $262 per square foot versus $215, reflecting features like in-law suites, second kitchens, and separate entries.
  • Buyer interest is strong, with multigenerational listings drawing 13.5% more page views nationwide and selling in the same median 59 days as standard homes.
  • The supply is concentrated in California, where Los Angeles, San Diego, San Jose, San Francisco, and Riverside hold the largest listing shares, and premiums can be modest such as 8.4% in San Francisco.
  • In markets with scarce supply such as Detroit, Cleveland, and Buffalo, premiums are steep at 120%, 107%, and 94% and listings attract far more views, while the number of such households has grown to about 4 million with typical homes hosting five people.