Multigenerational living is once again becoming common in the United States. Long before World War II, it was normal for grandparents, parents, and children to share the same home. After the war, new housing development and suburban expansion made separate households more affordable and desirable. Independence became the goal, and by the early 1970s, only about 7 percent of Americans lived in multigenerational households.
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Today, that pattern has shifted. Over the past five decades, the share of Americans living in multigenerational homes has more than doubled. By 2021, roughly 18 to 20 percent of the U.S. population lived with multiple generations under one roof. This change reflects economic pressure, rising housing costs, growing caregiving needs as the Babyboomer generation ages, and the rising costs associated with those needs.
In metro Phoenix, the trend is especially visible. Nearly 85,000 families in the Valley live in households with three or more generations, putting the region slightly above the national average. As a Phoenix native who has worked in the local real estate market for more than a decade, I see this shift influencing how buyers evaluate homes and how families plan for the long term.
What is driving the return to multigenerational living
The resurgence of shared living is largely practical. Rising home prices, limited inventory, and higher mortgage rates have made it harder for many households to afford separate homes. While new construction has increased, supply has struggled to keep pace with demand, especially at attainable price points.
At the same time, family dynamics are changing. Aging parents often need closer support, and adult children are staying home longer as they navigate student debt and housing costs. Multigenerational living can reduce expenses, share caregiving responsibilities, and offer stability during economic uncertainty.
For many families, the question is no longer whether living together makes sense. It is whether their home can support it comfortably.
How Phoenix policy is adapting to the trend
Local policy has begun to catch up with these realities. One of the most important developments is the expansion of accessory dwelling units, commonly known as ADUs or casitas. These self-contained units include kitchens, bathrooms, and separate entrances and are built on lots with single-family homes.
Phoenix has updated its zoning to allow accessory dwelling units in residential neighborhoods as part of broader statewide reforms that took effect in 2025. Arizona law now requires cities to permit attached and detached ADUs on single-family lots, giving families more flexibility to add independent living space while remaining in established neighborhoods.
Local size limits still apply, but they allow for functional living spaces. On smaller lots, ADUs are limited to 1,000 square feet. On larger lots, they can be significantly larger, provided they remain proportional to the main home. These changes have made it easier for families to add flexible living space without leaving established neighborhoods.
What multigenerational living looks like on the ground
In practice, multigenerational living in Phoenix takes several forms.
Detached backyard casitas are increasingly common. These units house aging parents, adult children, or extended family members while preserving privacy for everyone involved.
Some homeowners choose internal conversions instead. Finished garages, expanded suites, or connected living areas can function as semi-independent spaces without the cost of building a separate structure.
Newer developments are also responding to demand. Some builders now offer floor plans with separate guest quarters or dual primary suites designed specifically for multigenerational households. These options allow families to adapt their homes as needs change.
How buyer demand and marketing are shifting
Buyer priorities are evolving alongside these living arrangements. Homes with in-law suites, flexible layouts, or detached living spaces are attracting increased attention. Features that once felt specialized now help listings stand out.
There is also a financial component. When a family member eventually moves out, an ADU can generate rental income that helps offset housing costs. That flexibility appeals to buyers thinking beyond their immediate needs. Additionally, if such units are not needed for housing, many buyers and homeowners who work from home like the idea of using ADUs as separate office space from the main dwelling.
For seniors, multigenerational layouts support aging in place by offering independence alongside family support. Homes designed with that balance in mind continue to attract strong interest.
A familiar idea shaped by modern realities
Multigenerational living is not a new concept, but its revival reflects today’s economic conditions and evolving family structures. In Phoenix, zoning changes, ADU flexibility, and shifting buyer preferences are making it easier for families to live together in sustainable ways.
As housing affordability challenges persist, three-generation living is likely to remain an important part of the Valley’s housing landscape. Homes that offer flexibility, privacy, and adaptability will continue to resonate with buyers navigating this modern version of an old idea.
Author: Trevor H. Halpern, J.D., is the CEO of Halpern Residential at eXp and eXp Realty’s #1 independent agent in Phoenix. A Phoenix native, Halpern combines deep local expertise with a client-focused approach, creating success stories across every corner of the Valley. A graduate of ASU’s College of Law, he is known for his high-level strategy, sharp negotiation skills, and precise tactical execution. Since launching his real estate career in 2011, Halpern has closed more than $350 million in sales, ranks in the top 1% of agents in Greater Phoenix, and has been recognized by RealTrends as one of the top 1,000 agents in the United States out of 1.5 million.
