Maybe you’re looking for a home and having trouble finding one that fits your budget. Or maybe you’re already a homeowner and need extra income or a place for your loved ones. Whether you’re a prospective homebuyer or a homeowner with changing needs, an accessory dwelling unit (ADU) can help you achieve your goals.
What Is an ADU?
As AARP says:
“An ADU is a small residence that shares a single-family lot with a larger, primary dwelling.”
“An ADU is an independent, self-contained living space with a kitchen or kitchenette, bathroom and sleeping area.”
“An ADU can be located within, attached to, or detached from the main residence. It can be created out of an existing structure (such as a garage) or built anew.”
If you’re wondering if an ADU is right for you as a buyer or homeowner, here’s some helpful information and benefits that ADUs can provide. ADU regulations vary depending on where you live, so check with your local real estate professional for more information.
The Benefits of ADUs
Freddie Mac and the AARP identify some of the best features of ADUs for both buyers and homeowners:
Living Close by, But Still Separate: An ADU allows loved ones to live together with separate spaces. This means you can enjoy each other’s company, help each other with things like childcare, and enjoy privacy when needed. If this appeals to you, consider purchasing a home with an ADU or adding an ADU to your home. According to Freddie Mac:
“Having an accessory dwelling unit on an existing property has become a popular way for homeowners to offer independent living space to family members.”
Aging in Place: ADUs also allow seniors to stay close to their loved ones and receive help if they need it as they age. This gives them the best of both worlds: independence and support from loved ones. For example, if your parents are elderly and you want to be close to them, you can purchase a home as an ADU or add on to an existing home.
Affordable To Build: Because ADUs are generally smaller, they are generally less expensive to build than larger single-family homes. Building a building can increase the value of your property.
Generating Additional Income: If you own a home with an ADU or build an ADU on your property, this can help generate rental income that you can use to pay off your private mortgage. It’s worth noting that because ADUs are located as accessory dwelling units on a single-family lot, they typically cannot be sold separately from the primary home. However, in some states it is different. Work with an expert to understand your options.
These are some of the reasons why many people who get an ADU think it’s a good idea. According to Scott Wilde, vice president of John Burns Research Consulting:
“It’s gone from a small niche in the market to really a much more impactful part of new housing.”
