Updated for 2026 — what’s changed for multigenerational buyers in Woburn, Reading, Winchester, Wakefield, Burlington, Stoneham, Lexington, Wilmington, Tewksbury, Chelmsford, and Dracut.

If you’ve been wondering whether it makes sense to buy a multigenerational home big enough for your aging parents, your adult kids, a sibling working remotely, or some combination of all three — you’re in good company. Multigenerational living has become one of the most common conversations I have with buyers north of Boston, and the landscape has changed dramatically in just the past year.

Here’s what’s different in 2026, what’s possible now that wasn’t before, and how to actually make it work in our towns.

The big shift: Massachusetts now allows in-law apartments by-right

This is the headline. As of February 2, 2025, Massachusetts homeowners can build an accessory dwelling unit (ADU) — what most of us still call an “in-law apartment” — by right in single-family zoning districts. No more special permits, no more variances, no more years-long battles with zoning boards.

The change came from the Affordable Homes Act, signed into law in August 2024. You can read the official rules straight from the state at Mass.gov’s ADU page. The short version:

• ADUs can be up to 900 square feet (or half the size of the primary home, whichever is smaller).
• They can be inside the main house (think basement or attic conversion), attached as an addition, or completely detached (a backyard cottage or converted garage).
• Cities and towns can no longer require that the occupant be a family member.
• Parking requirements are limited.
• Communities can still regulate things like short-term rentals.

The Metropolitan Area Planning Council has been tracking how each town is rolling this out, and the rules vary at the edges — setbacks, lot coverage, septic requirements (especially relevant for homes on Title 5 systems). Always check with your town’s building department before you sign anything. But the underlying right to build is now state law.

Why this matters for multigenerational buyers: You no longer have to find a home with a perfect in-law setup already built. You can buy a house with a finishable basement, a deep lot, or an oversized two-car garage, and create the second living space yourself. That dramatically widens the inventory you can consider.

What “multigenerational housing” actually looks like

When buyers come to me wanting space for extended family, they’re usually picturing one of four setups. Each has different financing implications, different price points, and a different feel.

1. Single-family home with an integrated in-law suite. A bedroom suite — often with a small kitchenette, bathroom, sitting area, and sometimes a separate entrance — built into the main house. These are the easiest to finance because the property still appraises as a single-family home. They’re common in newer construction throughout Woburn, Burlington, and parts of Wilmington.
   
   
2. Single-family home with a detached or attached ADU. Thanks to the new law, this is now a much bigger category. You can buy a single-family in any of our towns and add a 900-square-foot cottage in the back, or convert the garage. The math changes if rental income is part of your plan, since the property still appraises as single-family but generates two-unit cash flow.
   
   
3. Two-family or multi-family home. A true duplex, triplex, or four-unit property where each unit is fully self-contained. These appraise as multifamily, which affects your loan options (often better for the buyer, since you can use FHA financing for one-to-four-unit homes if you live in one of the units). Reading, Wakefield, Stoneham, Tewksbury, Dracut, and Chelmsford all have meaningful two-family inventory in older neighborhoods.
   
   
4. Oversized single-family designed for shared living. A larger colonial or split-level with enough bedrooms and living spaces that two generations can coexist without formal subdivision. No second kitchen, but enough breathing room. This is the most flexible setup and often the easiest to resell later.

How families are financing these purchases

A few options worth knowing about — and worth asking your lender about specifically.

FHA 203(k) renovation loan. This rolls the purchase price and the cost of renovating into a single mortgage. If you’re buying a home and planning to add an in-law suite or ADU, this is often the cleanest path. The FHA program is more forgiving on credit and down payment than conventional renovation financing.

FHA loans for two-to-four-unit properties. If you’re buying a true multifamily, FHA allows as little as 3.5% down as long as you live in one of the units. The projected rental income from the other unit(s) can often help you qualify for a larger loan.

MassHousing programs. MassHousing offers down payment assistance — up to $30,000 for eligible buyers — that can be used on single-family, condos, or two-to-four-unit homes. There are income limits, but they’re more generous than most buyers expect.

Home Modification Loan Program. If your multigenerational plan involves a family member with a disability or someone over 60, the state’s Home Modification Loan Program offers no-interest financing for accessibility renovations and ADU construction. This is one of the most underused resources in Massachusetts.

Co-borrower applications. When two generations are buying together — say, you and your parents — both incomes can be used to qualify, and gift funds between family members can usually cover the full down payment. The IRS has annual gift tax exclusion limits (the figure changes each year, so confirm the current number with a tax advisor), but most family contributions to a primary home down payment fall well within them.

A note: if you’re considering pulling equity from a parent’s existing home to help fund the new purchase, especially through a reverse mortgage, that’s worth a careful conversation with both a lender and an elder law attorney. The wrong structure can cause problems with Medicaid eligibility down the road.

Who’s actually on the deed? Massachusetts has its own rules

This is where I see families get tripped up. How you take title to the home matters enormously — for taxes, for estate planning, for what happens if someone needs nursing care, and for what happens if a relationship sours. Massachusetts has its own legal framework, and the defaults aren’t always what you’d expect.

Under Massachusetts General Laws Chapter 184, Section 7, if a deed lists two or more owners without specifying anything else, it automatically creates a tenancy in common — not joint tenancy. That’s a big deal, because the two structures behave very differently:

• Tenants in common. Each owner has a specific percentage share. When one owner dies, that share passes through their estate (and their will), not to the other owners. Owners can have unequal shares — say, your parents own 30%, you and your spouse own 70%. Any owner can sell their share at any time. This is usually the right structure when generations want each side’s heirs to inherit their portion.
  
  
• Joint tenants with right of survivorship. All owners own equal shares. When one dies, the others automatically inherit their share, outside of probate. The deed must explicitly say “as joint tenants with rights of survivorship” or this structure isn’t created. This is simpler for transfers but can override what someone’s will says.
  
  
• Tenancy by the entirety. Only available to legally married couples, only on a primary residence, and offers strong creditor protection for the home.

For most multigenerational purchases involving more than one generation or branch of the family, tenants in common with a written co-ownership agreement ends up being the cleanest structure — but please, talk to a real estate attorney before you sign closing documents. The Middlesex North Registry of Deeds has a solid overview of Massachusetts real estate ownership if you want to read up before that conversation.

What’s happening with multifamily zoning in your town

The other big legal change reshaping our local market is the MBTA Communities Act (Section 3A of Chapter 40A). Every one of the towns you’re probably considering — Woburn, Reading, Wakefield, Winchester, Burlington, Lexington, Stoneham, Wilmington, Tewksbury — is an MBTA community required to allow multifamily housing by-right in at least one district of reasonable size.

The Massachusetts Supreme Judicial Court confirmed the law’s constitutionality in January 2025, and most towns have now adopted compliant zoning. Practically, this means more multifamily inventory is being built or planned in our area than at any point in decades. If you’ve been waiting for a two-family or condo with the right layout for shared living, the pipeline is finally opening up.

The Boston Globe has a town-by-town map that shows each community’s obligation under the law. It’s a useful planning tool if you’re trying to figure out where new inventory is likely to appear.

A quick tour of where multigenerational homes work well

Each town in my service area has its own character, its own housing stock, and its own price point. Here’s how I tend to think about them when a multigenerational buyer asks where to start looking. (For deeper dives, click through to the community pages — I keep them updated.)

• Woburn has the deepest mix of housing types of any town I work in. Older two-families in the Cummings and East Woburn neighborhoods, mid-century split-levels with finished basements ideal for ADU conversion, and newer construction with in-law setups closer to Horn Pond. Strong value relative to neighbors. See my Ultimate Guide to Moving to Woburn for more.
• Reading offers solid two-family inventory in the older neighborhoods near downtown and the commuter rail, plus larger single-families with the lot size you’d want for a detached ADU. Strong schools matter to multigenerational families with grandkids in tow. More in my Reading guide.
• Winchester runs at a premium price point, but the housing stock includes some of the most architecturally generous homes in the area — the kind with mother-in-law wings already built in. Home to Winchester Hospital, which matters if eldercare access is part of your decision.
• Wakefield has a beautiful mix of older two-families near the lake and downtown, plus newer construction with in-law potential further out. Active MBTA Communities zoning work means more multifamily inventory is on the way.
• Burlington has stronger single-family-with-suite inventory than two-family inventory. The lot sizes in many neighborhoods accommodate a detached ADU well.
• Stoneham punches above its weight for value and is centrally located. Mix of two-families near downtown and ranches with finished basements that convert well.
• Lexington is at the higher end, but the larger lot sizes make it one of the best towns for adding a detached ADU. Strong demand from buyers prioritizing schools and access to Route 2 and 128.
• Wilmington and Tewksbury offer some of the most affordable multifamily inventory in the inner ring, plus good lot sizes for adding accessory units.
• Chelmsford and Dracut are where families looking for more land and more house tend to land. Multifamily inventory exists but is more limited; the bigger opportunity is single-family-plus-ADU.

If you’d like a personalized search tailored to your family’s specific needs, I can set one up.

Five conversations to have with your family before you start looking

Before any of this — before the financing, before the deed structure, before the showings — the families who make multigenerational living work have usually had these five conversations openly:

1. What does daily life look like? Shared meals, or just shared bills? Joint childcare, or independent schedules? Be specific.
2. Who’s contributing what — and is it a gift, a loan, or a co-investment? This affects everything from the deed to the tax return.
3. What happens if someone wants out? Job change, divorce, falling in love with Florida — life changes. Plan for it now, in writing.
4. What happens if someone needs more care? Will the home accommodate aging in place? Is there a plan for if a parent needs skilled nursing?
5. Whose name is on what, and who inherits? This is where the deed structure and an updated estate plan have to line up. Don’t leave this to chance.

I usually suggest families work with a real estate attorney to put a co-ownership agreement in place before closing. It’s the document that addresses all of the above in writing, and it’s much easier to draft when everyone is excited about the home than when something has gone sideways.

What I tell my clients

Multigenerational homeownership done right can be one of the most financially smart and emotionally rewarding decisions a family makes. Done without planning, it can fracture relationships and trap people in homes they can’t easily sell. The difference isn’t the home — it’s the preparation.

If you’re starting to think seriously about this, I’d love to talk through your specific situation. Every family is different, and the right setup for your situation depends on details no checklist can capture. Reach out anytime at [email protected] or 339-227-2282.

In the meantime, if you want to start browsing, you can search homes north of Boston here or explore other resources for home buyers on the site.

This post is for general informational purposes and isn’t legal, tax, or financial advice. The laws and programs referenced here can change, and town-by-town rules under the ADU and MBTA Communities laws vary. Always confirm specifics with your real estate attorney, lender, tax advisor, and the relevant town building or planning department before making decisions.