Legacy Living
Multigen Compounds Rise in Popularity Amid Historical Wealth Transfer
As trillions are passed down to Gen X and millennials, real estate buyers are looking for “family alignment assets” that preserve wealth and family connection at the same time
Legacy Living
Multigen Compounds Rise in Popularity Amid Historical Wealth Transfer
As trillions are passed down to Gen X and millennials, real estate buyers are looking for “family alignment assets” that preserve wealth and family connection at the same time
A subtle but profound change is under way in the housing market—one driven less by interest rates or inventory shortages and more by demographics and inheritance.
The landscape of American wealth is undergoing a seismic shift, often called the “Silver Tsunami,” as an estimated $124 trillion will be transferred through 2048, with $105 trillion expected to flow to heirs, according to Cerulli Associates. Nearly $100 trillion will be transferred from baby boomers and older generations, representing 81% of all transfers.
With Generation X and millennials projected to inherit so much, a new asset class is emerging: the multigenerational compound. Far more than a large house, this is a “family alignment asset”—a strategic vehicle designed to preserve both financial capital and family connection.
It’s not just about reshaping balance sheets; it’s changing how families think about property itself. High-net-worth individuals are seeing their homes in the same way as advisors and developers who now use the term “family alignment assets”—properties designed to preserve wealth, accommodate multiple generations, and reinforce long-term family cohesion. At the center of this trend is the multigenerational compound.
Among the general public, interest in multigenerational living is at an all-time high. According to the National Association of Realtors (NAR), 17% of home buyers in 2024 purchased multigenerational homes, marking a record high and up from 14% the previous year. This surge is driven by cost savings (36%), care for aging parents (25%), and adult children returning home (21%), with Generation X leading the trend at 21% of buyers.
Exclusive data from Realtor.com found the frequency of terms such as “multigenerational,” “casita,” and “compound” has risen steadily in listings over the past two years, from 2.5% of listings in March 2024 to 4.9% in March 2026, based on comparable weekly snapshots. Whether or not that means more homes are being built as multigenerational estates, it’s clear those terms are becoming more common as general marketing language for flexible floor plans.
The landscape of American wealth is undergoing a seismic shift, often called the “Silver Tsunami,” as an estimated $124 trillion will be transferred through 2048.
Cerulli Associates (2026)
The landscape of American wealth is undergoing a seismic shift, often called the“Silver Tsunami,” as an estimated $124 trillion will be transferred through 2048.
Cerulli Associates (2026)
The landscape of American wealth is undergoing a seismic shift, often called the “Silver Tsunami,” as an estimated $124 trillion will be transferred through 2048.
Cerulli Associates (2026)
Defining the Contemporary Multigeneration Compound
The modern compound is not simply about square footage or luxury. It’s about flexibility, governance, and longevity. A typical multigenerational compound might include a primary residence, one or more guesthouses or accessory dwelling units (ADUs), shared amenities like kitchens or recreational spaces, and sometimes even working land or income-producing elements. Custom designs will often prioritize both proximity and autonomy. “The compounds that work best are the ones where three generations could live simultaneously and never feel on top of each other,” says Jen Cameron, Managing Partner of The Agency Seattle.
According to Cameron, nonnegotiables often include multiple, private residences (“each generation needs its own front door,” she says); shared gathering infrastructure; land with utility (“acreage that can be farmed, stewarded, or explored gives every generation a role and a reason to show up”); privacy from the outside world (“gated, waterfront, island, or mountain settings can make the compound feel like a world unto itself,” she says); and room to grow without anyone feeling crowded out. “The most successful multigenerational properties are the ones that balance togetherness with privacy,” adds Dana Trotter, Managing Partner of The Agency Hamptons. “Multiple living spaces, guesthouses, finished lower levels, outdoor rooms, and accessory structures allow families to gather together while also giving everyone space to retreat. That balance is what makes these properties actually work for extended family use.”
Joy Vance, Managing Partner of The Agency Bozeman and Big Sky, believes the ideal multigenerational compound “is less about scale and more about thoughtful design that incorporates separate guest homes or cabins to ensure privacy, alongside shared gathering spaces like great rooms and outdoor kitchens.” Furthermore, “these properties require a sense of architectural timelessness and longevity—ensuring the land is protected and can withstand unforeseen circumstances,” she says. “Ultimately, the best compounds feel effortless, allowing families to coexist without feeling crowded.”
⸺ At a glance
Multigenerational home purchases reach 17% in 2024, a record high
NAR (2024)
This surge, up from 14% in 2023, has been led by Gen-X as they respond to rising affordability pressures, caregiving needs, and evolving family structures.
A Trend Set to Accelerate
What distinguishes the rise of the multigenerational compound from past housing trends is its foundation in long-term structural forces.
The scale of the coming wealth transfer is unprecedented. At the same time, economic pressures—from student debt to housing affordability—are encouraging resource sharing. Cultural attitudes are shifting as well, with less stigma attached to multigenerational living and more emphasis on intentional community. Taken together, these forces suggest that the compound is an emerging asset class—one that blends real estate, financial planning, and family governance.
The multigenerational compound can be a strategic play—a deliberate attempt to turn wealth into something more durable than capital alone.
“There is a big push toward private family compounds now, whether for the high-net-worth individual desiring an expansive trophy property with full amenity packages or the average family that can accommodate additional ADU homes on one property,” says Paul Lester, Founder and Partner of The Agency in Los Angeles.
Lester notes how in recent years, many communities in California and other booming markets have implemented forward-thinking housing programs to allow the building of additional dwelling structures on owned land, encouraging families to coexist. “Density has been encouraged in municipalities to emphasize family living values and for the economics of the city structure,” he says.
From her perspective in The Hamptons, Trotter reports seeing an increase in buyers seeking properties with long-term family use in mind, especially in cases when the property can accommodate extended family through adjacent lots, multiple structures, guesthouses, or accessory buildings. “For families who bought years ago, or farming and local families who have held large parcels for generations, these properties have often produced significant returns,” she says. “For them, the conversation is less about simply owning a compound and more about how to preserve, divide, transfer, or eventually sell something that has become incredibly valuable over time.”
For new buyers, the challenge is much different. “Creating a multigenerational compound today often means assembling adjacent parcels, buying and tearing down, subdividing if possible, or taking on the high cost of building,” she says.
Trotter sees this type of activity more often with Generation X and older buyers than millennials. “These are buyers thinking about legacy, flexibility, family use, and long-term value. At the high end, affluent buyers want all of it: lifestyle, investment, privacy, proximity to family, and the ability to create something lasting.”
It’s a trend Vance sees growing. “Families are increasingly seeking flexibility and shared experiences over simple square footage.”
⸺ Survey Insights
Agents identify Gen-Z as the primary generation driving both home purchases and sales, followed distantly by Millennials
The Agency global survey (2026)
To provide a real-time view of the luxury housing market, The Agency Global Survey gathered insights from 2,500 agents across our global network. Their firsthand perspectives offer a unique look at the trends, challenges, and opportunities shaping local luxury markets around the world.
Gen-Z Buyers
Millennial Buyers
Baby Boomer Buyers
Gen-X Buyers
Gen-Z Sellers
Millennial Sellers
Gen-X Sellers
Baby Boomer Sellers
⸺ At a glance
The top 10 U.S. metros for multigenerational listing language; Portland, Oregon leads the way
Realtor.com (Found Among luxury markets with 1,000+ listings)
Portland–Vancouver–Hillsboro, OR-WA
San Diego–Chula Vista–Carlsbad, CA
Atlanta–Sandy Springs–Roswell, GA
Denver–Aurora–Centennial, CO
Orlando–Kissimmee–Sanford, FL
Urban Honolulu, HI
Seattle–Tacoma–Bellevue, WA
Austin–Round Rock–San Marcos, TX
Washington–Arlington–Alexandria, DC
Riverside–San Bernardino–Ontario, CA
Strategizing the Ultimate Family Alignment Asset
For affluent families, the compound is emerging as a quasifamily office tool—a physical anchor for broader wealth planning. Real estate has always been a cornerstone of wealth preservation, offering tax advantages, appreciation potential, and a hedge against inflation. But when structured intentionally, a shared property can also serve as a governance mechanism. This formalization helps avoid one of the most common pitfalls of inherited real estate: fragmentation. Without clear agreements, properties often end up sold or neglected as heirs disagree or drift apart. The compound model attempts to pre-empt that outcome by aligning incentives and expectations from the start.
After having been involved with numerous large-scale transactions, Lester has come to believe that the family compound is the most strategic vehicle for preserving wealth and the family connection. “For families, it provides both a legacy of ownership and quality of life while preserving inherent wealth through property ownership over time,” he says. “It generates more opportunities for expanding value by leveraging increased valuation over the years, which can be capitalized in financial markets and then passed down to the next generation of the family.”
Most importantly, according to Lester, the compound is usually held not by an individual but instead by a trust or LLC, thus creating formal frameworks for ownership, usage, and succession. Rules are established: who can use the property, how expenses are shared, how decisions are made, and what happens if someone wants to exit. “This can be managed in several ways, but it’s most important to position the home as an asset with its own entity so that it cannot be lost to an individual should that person perform badly,” he says.
Cameron notes how “an enormous number” of family compounds and estates are going to change hands over the coming years. “Many were acquired in the ’70s and ’80s, are significantly appreciated, and are held in structures that made sense then but are complicated now,” she says. “The families who engage a luxury broker, an estate attorney, and a family office advisor together—before a listing or a death forces their hand—are the ones who come out of it with both the wealth and the relationship intact.” ●
"Ultimately, the best compounds feel effortless, allowing families to coexist without feeling crowded."
Joy Vance, The agency Bozeman + Big Sky
⸺ Insider experts
Jen Cameron
The Agency Seattle
Dana Trotter
The Agency Hamptons
Joy Vance
The Agency Bozeman and Big Sky
