A record number of young adults are reportedly moving back in with their parents, not because they lack the ambition to live on their own, but because they can’t afford to. At the same time, a growing number of aging parents are choosing to stay put rather than downsize. Together, these two trends are reshaping what Colorado buyers are looking for in a home, giving rise to a new category real estate experts are referring to as the “Legacy Home.”
An Affordability Story, Not a Motivation Story
Nationally, 1 in 3 adults under 35 now lives with a parent. That’s a record-breaking 25.2 million people. The twist: 70% of them have jobs. This isn’t a story about ambition. It’s a story about affordability.
“I call this the Legacy Home,” said Shannel Ryan, President of LIV Sotheby’s International Realty, in a recent 9News interview. “One property, built for multiple generations, on purpose.”
According to Ryan, the legacy home is designed to hold a family’s next chapter and its last one, together.
Why Colorado
Colorado’s post-pandemic cost of living has climbed sharply, and for many residents, wages haven’t kept pace. In addition, homeowners’ insurance premiums across the state have surged over the past decade to unprecedented levels. Facing these mounting costs, some families are opting to combine households.
In good news, according to recent data from the Colorado Association of Realtors, the state’s Housing Affordability Index for single-family homes held steady year-over-year as of July 2026. In eight of the past twelve months, affordability actually improved compared to the year before, with gains as high as 12% in January. For Colorado condos and townhomes, the trend is even more positive, with affordability up nearly 2% year-to-date. At the same time, the number of homes for sale statewide remains well above recent lows, giving buyers more options and negotiating power than they’ve had in years.
The takeaway: rather than a widening gap between wages and homeownership costs, Colorado’s real estate market is showing signs of stabilizing, a shift that benefits both buyers gaining leverage and sellers seeing steady demand.
It’s Not Just the Kids
The Legacy Home trend isn’t only about adult children staying home longer. Parents are increasingly choosing to age in place instead of downsizing into senior living.
Nearly 40% of luxury agents report that aging in place is a growing priority among their clients. “People aren’t retiring into senior living the way they used to,” Ryan said. “They’re buying homes designed to age with them.”
Ryan added that requests for homes built to support both aging parents and adult children under one roof are among the fastest-growing she’s seen from clients.
What Buyers and Sellers Should Know
For buyers, this means prioritizing flexible square footage, including guest suites, finished basements, and main-floor primary bedrooms. For sellers, if a home already offers that kind of flexibility, it’s worth marketing directly to multi-generational families rather than leaving buyers to guess.
Ryan’s advice for families thinking long-term: have the conversation about future needs before you shop, not after falling for a house that doesn’t fit.
“People don’t back into decisions like this,” Ryan said. “They plan for them. That’s what a Legacy Home is: a house smart enough to actually hold your family, not just fit them.”
The Bottom Line
With Colorado’s population still growing, affordability may continue to be a hot topic. With parents living longer, healthier lives, the Legacy Home isn’t a passing trend; it’s a structural shift in how families are thinking about where, and how, they live.
