For many homebuyers, multigenerational living used to be considered an option of last resort: it was a route families took only when they needed to ride out a financial storm or care for ailing family members. But that mindset is on the decline: A growing number of families now say that they are embracing multigenerational living and moving in together by choice.

In fact, the share of homes occupied by three or more generations or by cohabiting households has jumped 45% in the last 20 years, according to Statistics Canada. By the time the 2021 census was recorded, over half a million kids lived with both parents and grandparents.1

Living with extended family has become especially popular in recent years as younger generations face higher home costs and seniors embrace aging in place. With average home prices continuing to outpace median incomes in Canada, first-time home buyers have become more open-minded about co-buying a home with friends or family.2

Indigenous and immigrant families are especially likely to embrace multigenerational living—often for cultural reasons.3 With multigenerational homes more common in other parts of the world, newcomers from those regions often prefer living with extended family, says Dr. Shimi Kang, a psychiatrist and parenting expert. "As Canada, in particular, is getting more multicultural, we see [multigenerational homes] are becoming a norm, not just for financial reasons."4

For many families, the benefits are substantial, said Kang to HuffPost Canada. "Pooling finances, pooling childcare, pooling household responsibilities, having a support system built-in."4 Plus, research shows that people who live in multigenerational homes are healthier and tend to live longer. They also enjoy more financial security.5

That's not to say that multigenerational living is easy: It can also be stressful—especially if you choose a home that isn't suited for a larger family. The key to making it work is to pick a home that can accommodate young and old alike...