The Rise of Multi-Generational Living in AZ

Multi-generational living is growing in Arizona’s East Valley, reflecting a national trend. According to the National Association of Realtors (NAR), 17% of homebuyers now purchase homes to share with parents, adult children, or extended family—the highest share ever recorded.

Why It’s Increasing

Affordability is the driving force. NAR reports that in 2024, 36% of buyers cited “cost savings” as their primary reason for choosing a multi-generational home, up from 15% in 2015. While caregiving for aging parents was once the top motivator, today’s high home prices and mortgage rates in Arizona have shifted priorities. This trend isn’t surprising given the East Valley’s average home price of $450,000.

Pooling Resources for Affordability

With rising costs, owning a home solo is challenging. Multi-generational living allows families to pool incomes and share expenses like mortgages and utilities. Rick Sharga, Founder and CEO at CJ Patrick Company, notes: “Purchasing a property with a family member… is one of the growing reasons for multi-generational households.” This strategy can make homeownership achievable, even in a competitive market.

Benefits Beyond Cost

This approach offers more than financial relief. Combining resources may qualify you for a larger home, providing extra space for everyone. Chris Berk, VP of Mortgage Insights at Veterans United, adds: “Multigenerational homes are a meaningful solution for families looking to care for one another while maximizing homebuying power.” In the East Valley, where space is valued, this can enhance quality of life.

Growing Momentum

The trend shows no signs of slowing. Nearly 28% of homebuyers plan to buy a multi-generational home, signaling a shift in housing preferences. In Arizona, where extended family ties are strong, this could reshape the market.

Challenges to Consider

While beneficial, challenges like privacy and differing lifestyles require planning. Working with a local expert can help navigate these issues effectively.

Call The Anderson Team to get the conversation started!