That old burn about living in your parents’ basement has lost a lot of its sting in LA’s current housing market. Rather, limited inventory and challenges to affordability are giving way to a new standard of multi-generational living. With a primary residence expected to support grandparents, parents, and children, the four-bedroom nuclear family home isn’t cutting it in one of the most expensive housing markets in the U.S. But what does that actually mean for residential living in Los Angeles?
Combining Households Under a Single Primary Residence
We recently talked about smaller homes becoming more popular in America’s housing markets. So, isn’t a primary residence that supports multiple generations pretty much the opposite of that? This is one of those situations where both trends are simultaneously true. While not every single home on LA’s market is bowing to this multi-generational trend, enough are to deserve your attention. The National Association of REALTORS® reported that 17% of the homes sold in 2024 were multi-generational households. Is it the economy? The changing family dynamic? Why not both?
If we take a step back and look at the trend’s development over the last half-century, the point becomes clearer. Looking back from 2021, the number of people living in multi-generational households has quadrupled over those 50 years, amassing roughly 59.7 million people or around 18 percent of the nation’s population. For a lot of buyers, combining households in a single multi-generational primary residence offers the only shot at security in the Southern California market.
The New Expectations of a Primary Residence
So, what structurally sets a multi-generational home apart from a standard single-family residence? It’s not just extra bedrooms, although those obviously can come in handy. Common selling points for buyers seeking multi-generational living accommodations include separate living areas, flexible floor plans, and, of course, Accessory Dwelling Units (ADUs), which we’ve talked about at great length on this blog. It’s basically a balancing act of shareability and privacy.
In most cases, multi-generational families prefer single-story homes, or at least layouts that reduce the need for the older residents to use stairs. Some designers are actually baking features into their plans that would offer heightened safety for older residents. Think stabilizing grab bars in showers, wider doorways, lever handles, and well-lit corridors and passages (without stairs, of course).
Another gesture toward multi-generational accommodation is the inclusion of twin primary suites in residences. This allows the heads of both adult generations, the grandparents and the parents, to have equal private space, rather than relegating one couple to a guest bedroom. Dual primary suites also lend themselves to stronger long-term resale value, regardless of whether a buyer has multi-generational needs.
LA’s Growing Love of the ADU
This heightened demand for primary residence models that consider multiple generations conveniently coincides with LA’s ADU boom. Unsurprisingly, ADUs have provided the fastest-growing solution to the market’s multi-generational needs. A detached ADU can cost anywhere between $200 and $400 per square foot to construct, but it can also generate between $2,000 to $4,000 in additional monthly income. That’s, of course, assuming the space isn’t already occupied by a family member. ADUs are nicknamed “in-law suites” and “granny flats” for a reason.
The city’s ADU boom owes a lot to California’s relaxing its laws on ADU permitting and construction. Since 2024, local authorities have been ordered to review ADU applications within a 60-day window, project requirements have been standardized, several zone restrictions have been lifted, and, in many cases, minimum parking requirements have been waived. The attractiveness of a primary residence with an ADU (or even ADU capabilities) has become a major selling point, not just for buyers seeking multi-generational accommodation, but for investors too.
Why More Homebuyers Are Thinking Multi-Generationally
In LA, we’re seeing a convergence of two factors that are adding heat to this trend of the multi-generational primary residence. The first is the affordability of homes in Southern California. By merging households, families stand a better chance of comfortable homeownership than trying their luck individually. The second is the Baby Boomer generation entering its twilight years. With many of this older generation moving into a stage of their lives that requires significant elder care, multi-generational living is often a preferable lifestyle to moving into an assisted living facility.
With this trend consuming nearly 20% of market interest, it’s important for buyers, sellers, and agents to have a firm understanding of this evolution in expectations of a primary residence. As the Baby Boomer generation progresses in age and housing inventory continues to sluggishly grow, multi-generational living may rapidly become the new norm for homeownership in Southern California.
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
