Why the Multigenerational Home Is Luxury Living Defined

SOURCE: Sotheby’s

High-end buyers are increasingly seeking space for everyone under one roof, bringing family together—at home or on holiday

“It’s where the family heartbeat is,” says Rodd Macklin, co-founder and managing director of Pennington Partners & Co, of the rise in multigenerational living, where grandparents, children and grandchildren share a home. 

The setup is emerging as a significant trend in luxury real estate, strengthening emotional connections, spreading caregiving duties and forging family legacies. “A home is often the anchor where families come together, making it a natural place for conversations about prosperity,” continues Macklin. “At the same time, it’s a major asset that must be structured thoughtfully if it’s going to last across generations.” 

And generational considerations matter. According to Macklin, Baby Boomers (born 1946-64) often downsize their daily living arrangements but keep a home for family gatherings, while Generation X (1965-80) increasingly house elderly parents and adult children. For Millennials (1981-96) and Gen Z (1997-2012), flexible living spaces beat large houses. “What’s the same across all generations is that their homes give a sense of belonging. It’s not just real estate,” Macklin says.

Indeed, the pull of multigenerational living is being felt globally, especially in countries with a culture of honoring and valuing older family members. “In Japan, the idea of a family living together has profound roots,” says Kantaro Aoki of List Sotheby’s International Realty, Japan. “Historically, it was common for the grandparents, parents and children to live together in the same household, especially in rural areas. Although the nuclear family became more common in the postwar years, the trend toward multigenerational homes is re-emerging.”

Suitable properties are shaped by location, purpose, architecture, land availability and cultural norms. “Thoughtful planning by an architect of how people want to live is the difference between successful intergenerational living and a big house,” says Bob Zuber, a partner at Morgante Wilson Architects in Chicago, Illinois. “Think rec rooms, sitting rooms, separate entry points if necessary, reading nooks and playrooms. Not everyone wants or needs to be surrounded by family members at all times.”

For Sandra Wendland of Legacy Sotheby’s International Realty in Portland, Maine, multigenerational housing comes in many forms. “Sometimes it’s a lakefront property, sometimes oceanfront or even island compounds, because it goes back to the family seeking meaningful time together.”

One of Wendland’s recent transactions—a lakefront property near the base of a ski resort—included the buyer’s mother, who had grown up skiing there. “She was elated to be able to enjoy the mountain and lake with her grandchildren,” says Wendland.

Just as space to come together is important, often so is real estate with space to be apart. “From the cultural aspect, I think the luxury end is really about unplugging,” says Margaret “Meg” Smith of Daniel Gale Sotheby’s International Realty in Bay Shore, New York.

Smith recently sold a multigenerational property on Fire Island, New York. It comprised three separate houses: one on the bay, one ocean-facing, and the third centered between them as an entertainment space. Two brothers thought it was perfect because each one could have their own home and they could bring their families together in the middle, Smith says.

For affluent families, these purchases represent more than a lifestyle choice—they are strategic investments that address multiple financial objectives while creating space for the family to thrive across generations. Whether used for vacations with extended family or year-round living, multigenerational homes offer the chance to deepen family connections and create a lasting real estate legacy. As Macklin concludes, it’s about having “somewhere that ties everyone together.”

SOURCE: Sotheby’s

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