Answer
Wa `alaykum as-Salamu wa Rahmatullahi wa Barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
It is allowed for families to live together as long as there is no gathering between non-mahrams, all men and women are keeping chastity in clothing and speech and they are all following Islam’s teachings. All Muslim families are allowed, even urged, to visit each other on different occasions.
In his response to your question, Imam Yassir Fazaga, the Religious Director of the Orange County Islamic Foundation (OCIF), Mission Viejo, California, the US, states:
Islam encourages keeping strong ties with families and relatives, be they related by blood, marriage or fosterage. In more than one verse of the Qur’an, we are reminded of this.
For example, Allah Almighty says:
“O mankind! Reverence your Guardian-Lord, who created you from a single person, created, of like nature, His mate, and from them twain scattered (like seeds) countless men and women;- reverence Allah, through whom you demand your mutual (rights), and (reverence) the wombs (that bore you): for Allah ever watches over you.” (An-Nisaa’ 4:1)
Families may choose living together so long as privacy, confidentiality and appropriateness in dress and behaviour, keeping a reasonable distance are followed.
If families choose not to live together, then they are highly encouraged to visit one another applying the same mentioned rule.
For more, see these links:
Calling In-Laws Mom and Dad in Islam
I Can Not Live With My In-Laws
In-Laws Don’t Allow Me to Live with My Husband
Allah Almighty knows best.