Downsizing to Next-Gen & Multigenerational Homes in Colorado

Next-Gen & Multigenerational Homes in Colorado: Why They’re Key for Downsizing Households (2026)

A next-gen home (also called a multigenerational or “home-within-a-home”) is a single property designed for two or more generations to live together with privacy—typically through an attached private suite, a finished basement apartment, a main-floor second primary bedroom, or an accessory dwelling unit (ADU). In Colorado, these homes have become one of the smartest answers to high prices, aging parents, and another generation returning home — and they pair naturally with downsizing.

The Kenna Real Estate Group at Keller Williams DTC specializes in multigenerational and next-gen homes across the Denver Metro area and the Colorado Front Range—Highlands Ranch, Littleton, Centennial, Lone Tree, Parker, Castle Rock, Lakewood, Arvada, Golden, Boulder, Fort Collins, Loveland, Colorado Springs, and surrounding communities.

What Is a Next-Gen / Multigenerational Home?

A next-gen home keeps everyone under one roof while preserving independence. The most common Colorado configurations are:

Why Next-Gen Homes Are Key in Colorado Right Now

Multigenerational living is at a record high, and Colorado’s prices and new ADU law make next-gen homes one of the best ways for households to buy or stay in a home together. Three forces are driving the trend:

1. Multigenerational buying is at an all-time high

According to the National Association of REALTORS®, multigenerational households made up about 17% of home purchases in 2024 — a record for the segment. Gen X buyers led the way at roughly 21%, often because they’re caring for aging parents and supporting another generation at the same time. The U.S. Census Bureau counts roughly 6 million multigenerational households nationwide, and the number has been climbing for years.

2. Colorado affordability makes shared homes smart

Front Range prices have pushed many households to pool resources. Combining a parent’s home equity with an adult child’s income can open up a larger, better-located home than either could buy alone — while splitting the mortgage, taxes, utilities, and upkeep. For a downsizing senior, moving in with family can convert a high-maintenance house into freed-up equity and built-in support.

3. Colorado’s new ADU law opened the door

Colorado’s House Bill 24-1152, which took full effect on June 30, 2025, requires most Front Range jurisdictions — including Denver, Boulder, Fort Collins, and Colorado Springs — to allow an accessory dwelling unit on lots zoned for single-family homes. The law removed many old barriers such as owner-occupancy mandates and extra parking requirements, streamlined approvals, and limited HOAs in covered areas from banning ADUs outright. In plain terms: building an in-law suite or “granny flat” on your property is now far more achievable than it was just a couple of years ago. Buildability still depends on lot setbacks, height limits, and local code, so confirm specifics with your jurisdiction before you buy or build.

How Next-Gen Homes and Downsizing Work Together

Downsizing and multigenerational living are two sides of the same move. There are two common paths:

• The parent downsizes in. A senior sells a large, high-maintenance home and moves into a private suite or ADU at an adult child’s property — freeing equity, lowering monthly costs, and adding family support and protection.
• The family upsizes to bring everyone together. The next generation buys a next-gen home with a separate suite specifically so a parent can move in, often using the parent’s equity as part of the down payment.

Either way, the financial math hinges on getting the current home’s value and net proceeds right first — which is where a professional valuation beats an online estimate.

Financial & Lifestyle Benefits of a Next-Gen Home

What to Look for When Buying a Next-Gen Home in Colorado

• A true private entrance for the second living space, not just a shared hallway.
• Main-floor living or no-stairs access for the suite intended for a senior.
• A second kitchen or kitchenette and separate bath for real day-to-day independence.
• ADU potential — lot size, setbacks, and zoning that allow a future casita.
• Sound structure and systems — whether a basement or garage can be converted securely and to code.
• HOA and metro-district rules that permit the use and any future build.

That last point is where our team’s background matters: led by a former multifamily construction superintendent, we can walk a property and tell you whether a basement, bonus room, or lot can realistically become the private suite your family needs — before you write an offer.

Why The Kenna Real Estate Group Is Colorado’s Next-Gen Home Expert

Multigenerational and next-gen homes aren’t a side category for us — they’re a core specialty. Households across the Front Range choose The Kenna Real Estate Group because we bring:

• 25+ years in Colorado real estate, with deep experience in 55+ communities, downsizing, and multigenerational layouts.
• A construction superintendent’s eye — 13 years building multifamily housing — so we evaluate suites, basements, and ADU feasibility, not just bedroom counts.
• Front Range coverage from Fort Collins to Colorado Springs, including the ranch and patio homes that suit shared living.
• Equity and timing strategy for households combining a downsizing parent’s sale with a next-gen purchase — including buy-first, sell-first, rent-back, and contingent-offer planning.
• Accessibility guidance on main-floor living, accessibility, and the Colorado property tax programs that can lower a senior’s costs.

Frequently Asked Questions About Next-Gen Homes in Colorado

What is a next-gen home?

A next-gen home is a single property built or adapted for two or more generations to live together with privacy — usually through an attached private suite with its own entrance, a finished basement apartment, dual main-floor primary suites, or an accessory dwelling unit.

Are multigenerational homes popular in Colorado?

Yes. Nationally, multigenerational households reached a record 17% of home purchases in 2024, and Colorado’s high prices plus its new ADU law have made next-gen homes an especially practical choice along the Front Range.

Can I build an in-law suite or ADU on my Colorado property?

In many Front Range communities, yes. Colorado’s HB24-1152, effective June 30, 2025, requires most metro jurisdictions to allow an ADU on single-family lots and limits HOAs in covered areas from banning them outright. Final buildability still depends on lot setbacks, height limits, and local code, so confirm with your jurisdiction.

How do households pay for a next-gen home?

Many households pool resources — combining a downsizing parent’s home equity with an adult child’s income to qualify for a larger or better-located home, then sharing the mortgage, taxes, and utilities. Getting an accurate value on the home being sold is the critical first step.

Is a multigenerational home a good investment?

It can be. Beyond shared monthly costs and built-in caregiving, a basement suite or ADU can produce rental income when it isn’t needed for family, and flexible space tends to hold broad buyer appeal at resale.

Can The Kenna Real Estate Group help me find a next-gen home?

Yes. We help households across Denver Metro and the Colorado Front Range find homes with private suites, no-stairs access, second kitchens, and ADU potential — and we evaluate whether a property can be adapted to fit your family before you buy.

Find Your Family’s Next-Gen Home in Colorado

Whether you’re a parent ready to downsize in with family or a family searching for a home that brings everyone together, the right next-gen property can mean shared costs, built-in support, and more freedom for everyone. The Kenna Real Estate Group at Keller Williams DTC brings 25+ years of Colorado real estate experience and a builder’s eye to every multigenerational move.

Call The Kenna Real Estate Group today for a free Colorado next-gen and downsizing consultation.