Oregon family builds 2 homes connected by 'one long hallway' to keep aging parents close. How a multigen home can offer big savings and other perks

A door that locks on both sides divides the home into two separate living spaces — one side housing Ochoa, her husband and their two young sons, and the other side housing her parents.

"Coming from San Diego, we wanted a slower pace of life in which to raise our [future] kids, and one that was less expensive," Ochoa told People (2).

The math adds up

Pew Research Center found that 59.7 million Americans lived in multigenerational households as of 2021, up from the 1970s by roughly four times (3).

The decision to live this way reflects a broader affordability challenge. According to the National Association of Realtors (NAR), 17% of homes purchased in 2024 were bought by multigenerational households — the highest share on record. Among Gen X buyers, that rose to 21% (4).

That year, cost savings ranked as the primary motivation for 36% of multigenerational homebuyers, up from 15% in 2015.

In Ochoa's case, rather than purchasing two separate Oregon homes — where median prices hover around $489,000, according to Redfin (5) — the families share land costs, utilities, property taxes and maintenance.

Both sides of Ochoa's home have their own kitchens, bathrooms and washer-dryers (2). As a result, each household operates independently unless they choose to interact. Importantly, the arrangement also helps address future caregiving needs and related expenses for Ochoa’s parents.

Benefits extend beyond housing cost savings

The multigenerational arrangement generates savings across multiple categories that would otherwise drain many family finances.

Child care represents one of the largest potential savings areas. The national average for center-based infant care was about $1,230 per month in 2025 — nearly $15,000 annually per child. In Washington, D.C. ($2,020 per month) and Massachusetts ($1,743 per month), annual costs exceed $20,000 (6).

There are also potential savings in time and expenses related to household chores and maintenance. Ochoa's mom took care of household cleaning after her first child was born (1), when she was recovering from a complicated birth. Her father handles home maintenance tasks, thereby reducing or eliminating contractor fees.

The most significant long-term savings come from avoiding or delaying institutional care. Assisted-living facilities now cost a median of $6,313 monthly, or $75,756 annually, according to SeniorLiving.org. Over a decade, a couple could spend upwards of $750,000 to $1,000,000 (7).

That expense is permanent, whereas a multigenerational home preserves capital — instead of spending $750,000 or more on care, families invest in property that may retain or appreciate in value. This may partly explain why poverty rates are lower among multigenerational households (10%) versus other living arrangements (12%), according to Pew Research (3).

The multigenerational setup also reduces reliance on external caregiving systems — when Ochoa’s parents eventually need assistance with daily activities, family members are already present.

Plus, there is greater opportunity for bonding.

"It's just amazing having my parents get to grow up with their grandkids, and my sons get to grow up with their grandparents," Ochoa told Business Insider.

When it works and when it doesn’t

Despite growing interest, zoning laws in many municipalities restrict homes with separate living quarters, often classifying them as illegal "multifamily" dwellings.

Accessory dwelling units (ADUs) offer one workaround. Some states provide grants of up to $40,000 for pre-construction costs, according to Riskwire (8).

Construction costs remain another major hurdle. The Ochoas had both families contributing financially. "My dad found a general floor plan that worked for what we were looking for," Ochoa noted. "We took it to our builder, and they modified it” (1).

Ochoa acknowledges that the arrangement is not a universal solution. "People have their own family dynamics, but I do think people who have really great relationships with their families are like, ‘Oh, this is a possibility. This is something I could be thinking about’” (1).

Her advice centers on communication. "You can't tiptoe around issues when something comes up. You just have to address it” (1).

She also emphasized the importance of setting boundaries and defining household roles before construction began.

The lockable door between the two residences serves as both a practical divider and a recognition that privacy matters. The household also functions as a team, with shared responsibilities that align with everyone’s strengths, People reported (2).

What families should consider

As housing and other living costs continue to rise, more families may conclude that building connected homes is not only emotionally meaningful, but also financially strategic.