On Long Island, Multi-Generational Homes Draw Steady Demand From an Underserved Market

Written by:

Steve Marcinuk

Date:

21 May 2026

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Across Long Island’s residential market, a specific property type is drawing steady attention from a growing segment of buyers: the multi-generational home. While inventory remains tight and interest rates continue to shape purchasing decisions, families seeking ways to pool resources and live together, without sacrificing privacy, are finding few options built for their needs.

Eileen Collini, a realtor with Charles Rutenberg Realty Inc. and a 20-year veteran of the Long Island market, recently closed on one such property in Ronkonkoma and sees the category as one worth watching. “Multi-generational houses are not based on an average family,” she says. “It’s a niche market, and it’s a market that is really not understood.”

A Property Type Without a Clear Category

Part of what makes multi-generational homes difficult to track is how they’re classified. These properties don’t fit neatly into a dedicated listing category and typically fall under standard residential search results. That means buyers actively seeking them have to dig deeper, and sellers marketing them need to understand who the actual audience is.

The Ronkonkoma property Collini recently sold illustrates the concept well. A cape-style home that was substantially redesigned, with a layout that included two upper-level living spaces and a legal accessory apartment on the lower level. The result was a home that could accommodate multiple family units living separately under one roof while still offering shared common areas.

“They can live separately and yet they have a place where they can also meet as a family,” Collini says.

Who Is Buying These Homes

The appeal is largely financial. With property prices elevated and inventory limited across Long Island, pooling resources across generations allows families to afford homes that would otherwise be out of reach for a single household. The arrangement works when privacy is preserved, but the buying process itself introduces complications that standard transactions don’t face.

Multiple decision-makers must align on a single purchase, sons, daughters, in-laws, each with their own priorities and financial positions. Not every family that expresses interest is actually ready for what the format entails, both financially and interpersonally. Collini found that a number of prospective buyers who toured the Ronkonkoma property didn’t fully grasp the scale involved. “An average family is not going to fit into a multi-generational family,” she says. “It’s just entirely too much house for them.”

The Broader Long Island Context

Long Island’s geography and housing diversity support a wide range of buyer profiles, from waterfront properties along the North and South Shores to more affordable co-ops and entry-level homes. The Hamptons anchor the eastern end, while proximity to New York City drives demand from the west.

Collini’s next listing is in Long Beach, a coastal community a few blocks from the ocean and close to commuter rail access, a combination that tends to attract buyers who want beach living without fully disconnecting from the city.

Inventory constraints remain a consistent theme. Limited supply continues to support prices, and seller concessions, which were more common in earlier market cycles, have become less frequent. Collini notes that lending conditions have eased enough to keep transactions moving. “If it’s easy to get a loan, the house is going to sell,” she says.

Rates, Rents, and the Rent-to-Own Calculation

The affordability pressure driving interest in multi-generational homes also shows up in how individual buyers are rethinking ownership. Collini is currently working with a buyer who initially explored mobile homes as an affordable option before pivoting toward co-ops after finding that monthly ownership costs were competitive with local rents.

“The rents are so high, it’s so hard for her to find something,” Collini explains. “She’s looking at the possibility of buying a co-op because it’s almost as much as the rents and it’s something that she can own.”

This pattern is appearing in markets across the country, where the gap between monthly rent and monthly mortgage payments has narrowed enough to push hesitant buyers toward ownership.

Service Over Sales

After more than two decades in the business, including a recent return to Charles Rutenberg Realty after a period with Signature Premier Properties, Collini is clear about how she approaches her work. “I’ve always been a service person. I’m not a salesperson,” she says. “You have to look at your buyer’s needs, your seller’s needs, and you have to be there for them.”

That orientation shapes how she handles friction in transactions. Rather than viewing difficult negotiations as deal-breakers, she treats them as problems to work through. “You can always patch things up, you can always negotiate,” she says. “Usually, people come to their senses, and you can come to a meeting of the minds.”

Her broader view of the market reflects the same steadiness. Buyers worry they will never find the right home. Sellers worry their property will never move. In her experience, neither fear tends to materialize. “Everything sells,” she says. “I’ve never had a house I didn’t sell.”

A Niche Worth Watching

For developers, investors, and agents paying attention to where demand is quietly building, multi-generational housing on Long Island represents an underserved segment with clear drivers behind it. Affordability pressures are pushing families to combine resources. An aging population means more households where adult children and elderly parents need to live near each other. And current inventory offers few purpose-built options for these buyers, meaning those properties that do fit the format face less competition and attract motivated purchasers.

The challenge, and opportunity, lies in recognition. Until multi-generational homes earn their own listing category or gain wider visibility among agents and developers, the market will remain difficult to navigate for both buyers and sellers. Those who understand the format and can identify the right audience stand to connect with a buyer pool that is specific in its needs, financially capable when resources are combined, and largely overlooked by the broader market.

About the Expert: Eileen Collini is a Realtor with Charles Rutenberg Realty Inc., covering Long Island’s residential market with 20 years of experience. Her practice spans residential sales across a range of property types, including multi-generational homes, co-ops, and coastal properties.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.