Multigenerational living trends rise amid economic and caregiving needs

Multigenerational living is on the rise in the United States, driven by economic pressures, increasing housing costs, and evolving caregiving needs. Research from the Federal Reserve Bank of Boston indicates that more households are including two or more adult generations, such as grandparents, parents, and grandchildren, under one roof or on the same property.

This living arrangement can offer benefits including shared expenses, companionship for seniors, and the ability to divide household responsibilities. Common configurations include the ‘sandwich generation’—adults supporting both children and aging parents—as well as ‘grandfamilies’ where grandparents act as primary caregivers.

To manage the transition, experts suggest preparing for the financial responsibilities associated with supporting aging relatives. This includes having early conversations regarding income, pensions, and debts, as well as creating a dedicated family support budget to account for medical, housing, and maintenance costs. Investigating available government benefits and local assistance programs can also help mitigate the financial burden on family members.