Multigenerational Homes Selling Fast at Premium Prices Across U.S. Markets

Affordability pressures are reshaping the U.S. housing market, pushing families to seek creative solutions for shared living. A new Realtor.com report highlights the growing demand for multigenerational homes—properties designed to house two or more adult generations under one roof.

These homes, often featuring in-law suites, accessory dwelling units (ADUs), extra kitchens, and multiple entrances, are becoming a hot commodity. According to Realtor.com, the median asking price for a multigenerational home in 2025 reached $709,000, a 65% premium over the standard listing median of $429,900.

Even when comparing square footage, multigenerational homes command higher prices: $262 per square foot versus $215 per square foot for traditional homes.

“Multigenerational living is a meaningful force in the housing market. A sense of shared purpose and care is at the heart of multigenerational living, a housing arrangement that is quietly shaping American family life.”

Where Multigenerational Homes Are Most—and Least—Common

The availability of multigenerational homes varies significantly across the U.S. The West, particularly California, leads in listings. The top five cities with the highest share of such homes are all in California:

• Los Angeles: 23.7%
• San Diego: 22.7%
• San Jose: 18.0%
• San Francisco: 17.4%
• Riverside: 14.9%

In these markets, the premium for multigenerational homes is relatively modest. For example, in San Francisco, these homes sell for just 8.4% more than single-family homes.

Extreme Premiums in Inventory-Constrained Markets

In contrast, markets like Detroit and Cleveland have far fewer multigenerational listings, driving up prices dramatically. In Detroit, these homes are listed for an average of 120% over the price of standard houses, while in Cleveland, the premium is 3.1%. Detroit’s multigenerational homes also attract 82% more listing views than single-generation homes.

“In markets like Detroit and Cleveland, multigenerational homes are a rare find, and when one hits the market, buyers respond. The strong demand and steep premiums we are seeing in inventory-constrained markets point to a real mismatch between what buyers are looking for and what is actually available.”

As multigenerational living continues to rise, the gap between demand and supply is widening, leaving buyers in high-cost areas with limited—and expensive—options.