Buying Together: Why Multigenerational Homes Are Booming in the Twin Cities

What if the smartest move in today’s Twin Cities market isn’t buying alone, but buying together? Families across the metro are combining equity and incomes to buy homes none of them could afford on their own. Multigenerational living is growing here not because it’s trendy, but because the math finally works.

Details are as of my video above (June 2026).

The great consolidation

Mortgage rates aren’t going back to 3%, and one income often can’t compete in suburbs like Edina or Wayzata. So parents are selling long-time homes, adult children are cashing in starter-home equity, and some grandparents are adding retirement savings, all pooled into one purchase. Two homes sold, one home bought.

With inventory still low and multiple buyers competing for good listings in places like Plymouth, Eden Prairie and Maple Grove, two households that would each lose out on separate homes can win one together.

Designs that make it work

Shared living used to mean being crammed in together. Not anymore:

• Walkout suites. In Woodbury and Lakeville, builders are finishing walkout lower levels as independent suites, with full kitchens, separate entrances, private patios, heated floors and 9-foot ceilings.
• “Two-door” homes, designed with internal separation so each household has its own entrance and space. You might share a wall, but not a coffee maker.
• Dual primary suites. Builders in Lakeville, Woodbury and Cottage Grove are adding two owner-level bedrooms, on the main floor when possible, each with its own bath and walk-in closet, so nobody feels like a guest.
• Soundproofing and zoning: insulated walls between living areas, solid-core doors and zoned HVAC.

I’ve seen families try this without the design upgrades, and it usually doesn’t end well. Get the design right up front, or you’ll be remodeling within six months.

The ADU opportunity

Zoning changes in 2025 and 2026 opened the door to accessory dwelling units (ADUs), also called granny flats or casitas, in cities including Edina, Roseville and St. Louis Park, and permit data shows a jump in construction in established neighborhoods. An ADU can be a separate unit over the garage, an attached addition or converted space.

Legal, permitted living space drives value. Add 600 square feet of permitted, livable space to a $700,000 Edina home, and it’s no longer a $700,000 home. In Roseville, owners are pulling permits to add value before listing, and in Edina, “Is an ADU possible here?” comes up on listing tours. If you own in one of these cities, check your city’s new ADU rules. We can help you see what your lot may qualify for.

The math

Say two households can each afford a $500,000 home. That’s two mortgages, two tax bills, two roofs, two furnaces, two air conditioners and two driveways. Combined, they might buy a $900,000 home in a stronger location with more space: one mortgage, one tax bill, one roof. Each household’s monthly cost can fall below what separate smaller homes would cost.

A pooled 20% down payment becomes manageable on a larger home, which can mean better loan options and no PMI. And one well-located home can hold value and sell well when it’s time to move.

There can be real tax and estate angles too, like gift taxes, inheritance, capital gains and trusts. I’m not your attorney or CPA, so talk with both about how to structure ownership.

Future-proofing your home

I expect flexible layouts to keep gaining demand through the rest of this decade and beyond. Buyers increasingly want a finished lower level, a second primary suite or ADU potential, and homes that flex for multigenerational buyers should keep drawing strong interest when they sell.

If you own now: could your walkout become a suite? Could the bonus room over the garage become an ADU? Could an unused dining room become a private studio? If you’re shopping: look beyond square footage to convertibility: walkouts, dual primaries, separate entrances, garage apartments and lots that allow a detached ADU.

Want help finding a home that works for your family, or checking whether your home qualifies for an ADU? Reach out to our team.