Multigenerational homes have long been part of Canadian life, but their popularity is growing fast!

What exactly is a multigenerational home?

A home designed (or renovated) to house multiple generations of the same family while preserving privacy and independence. Unlike simply having many bedrooms, these homes include distinct living areas such as:

• A basement or upper-floor suite with its own entrance, kitchen, and bathroom
• A partially shared home with separate living quarters
• A garden suite or laneway home on the same property

Why multigenerational living is growing

Affordability: Pooling resources makes homeownership more achievable as prices climb across Canada.

Lower Childcare Costs: Grandparents and parents can share caregiving, benefiting both children and older adults.

Aging in Place: Seniors can live independently while staying close to family support.

Cultural Norms: For many families, multigenerational living is traditional—and Canada’s growing diversity is reinforcing this model.

The Multigenerational Home Renovation Tax Credit (MHRTC) - Introduced in the 2023 federal budget, the MHRTC helps offset the cost of creating a self-contained secondary unit for a qualifying family member. Eligible renovations include creating or upgrading a secondary suite, adding a separate entrance, meeting building codes, or improving accessibility.

How it works:

• Refundable credit worth 15% of up to $50,000 in eligible expenses
• Maximum credit: $7,500
• Can be claimed even if no income tax is owed

Who qualifies?

The secondary unit must be for:

• A senior (65+) or
• An adult eligible for the Disability Tax Credit (They must be you, your spouse/partner, or a close relative (parent, grandparent, child, sibling, aunt/uncle, niece/nephew, etc.).

How to claim:

Keep all receipts and permits and claim the credit on line 45355 of your tax return in the year the renovation is completed. 

Designing a home that works

Privacy matters: Separate entrances, defined living spaces, and good soundproofing are essential.

Plan for accessibility: Main-floor suites, wider doorways, and walk-in showers future-proof the home and support aging residents.

What this means for real estate

• New builds with legal secondary suites
• Homes marketed specifically for multigenerational living
• Floor plans with in-law suites
• Zoning changes allowing multiple units on one property

With housing costs rising and family needs evolving, it’s a meaningful change in how Canadians buy homes and choose to live. Multigenerational living reflects real financial, demographic, and cultural shifts. Whether you’re buying, renovating, or investing, it’s a change worth paying attention to. Feel free to call me for more information 416-909-6497.