The Type of Home Today’s Buyers Will Pay More For

That extra bedroom on the main level. The finished basement with a kitchenette and private entrance. The bonus room that’s become a storage space.

To you, it may just feel like extra square footage. But to a growing number of buyers, it could be the feature that makes them choose your house. Here’s why: multi-generational homebuying is on the rise.

More Families Are Embracing Multi-Generational Living

Multi-generational living is becoming more common, with three or more generations sharing the same home. According to Realtor.com, the number of these households increased from 3.2 million in 2014 to nearly 4 million in 2024.

And every year, more buyers are searching for larger homes that can accommodate everyone’s needs.

While demand for homes that support multi-generational living is growing nationwide, data from USAFacts shows these households are more common in certain states. On the map below, darker shading represents a higher concentration of multi-generational households (see map below):

Where does your state rank? Depending on your location, the number of buyers searching for a home like yours may be larger than you realize. But the main takeaway is clear:

There’s a strong market for larger homes that can comfortably accommodate multiple generations—especially while affordability remains challenging. If your home offers that kind of flexibility, it could be in high demand.

Multi-Generational Homes Can Command a Higher Price

That additional space can hold significant value for the right buyer. According to Realtor.com, the median asking price for a multi-generational home reached $709,000 in 2025—about 65% more than the $429,900 median for a traditional home.

Part of that premium comes from having more space. But even when comparing homes with similar square footage, multi-generational properties still command more—$262 per square foot versus $215.

That’s a 22% premium for desirable features such as in-law suites, secondary kitchens, and private entrances (see graph below):

When you sell, these features could help you walk away with more money—especially when your agent showcases your home’s multi-generational potential in the listing.

And Buyers Are Willing To Pay the Premium

Even with their higher price tags, buyers remain interested. According to the same Realtor.com report, multi-generational homes received 13.5% more online views than traditional homes and sold just as quickly—typically in about 59 days.

As Hannah Jones, Senior Economic Research Analyst at Realtor.com, explains:

“In markets where inventory is limited, strong buyer demand and higher prices reveal a clear gap between the homes people want and what’s available. For sellers, owning this type of property can be a major advantage.”

Simply put, when buyers have specific needs, a home that meets them is more likely to stand out.

Bottom Line

If your home offers extra space or features that support multi-generational living, it may provide exactly what many buyers are struggling to find. That added flexibility can attract more attention—and potentially stronger offers. Connect with a local real estate agent to find out what your home could command in today’s market.