Unlocking ADU Benefits for Your Home
Are you a prospective homebuyer struggling to find a property that aligns with your budget? Or maybe you're an existing homeowner exploring ways to generate additional income or accommodate extended family. In either scenario, Accessory Dwelling Units (ADUs) could be the perfect solution to meet your real estate objectives. Known for their versatility and cost-effectiveness, ADUs offer unique opportunities to enhance property value, create rental income, or expand living space for multi-generational families.
What Is an ADU?
“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.”
purchasing a home with an existing ADU? Here's a comprehensive guide to the key advantages and benefits that ADUs offer. It's crucial to note that local laws and zoning regulations for ADUs can differ significantly based on your location. For personalized guidance tailored to your situation, consult a local real estate expert.
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: ADUs allow loved ones to live together while having separate spaces. That means you can enjoy each other’s company and help each other out with things like childcare, but also have privacy when needed. If this appeals to you, you may want to consider buying a home with an ADU or adding an ADU onto your house. 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: Similarly, ADUs allow older people to be close to loved ones who can help them if they need it as they age. It gives them the best of both worlds – independence and support from loved ones. For example, if your parents are getting older and you want them nearby, you may want to buy a home with an ADU or build one onto your existing house.
Affordable To Build: Since ADUs are often on the smaller side, they’re typically less expensive to build than larger, standalone homes. Building one can also increase your property’s value.
Generating Additional Income: If you own a home with an ADU or if you build an ADU on your land, it can help generate rental income you could use toward your own mortgage payments. It’s worth noting that because an ADU exists on a single-family lot as a secondary dwelling, it typically cannot be sold separately from the primary residence. But that’s changing in some states. Work with a professional to understand your options.
These are a few of the reasons why many people who benefit from ADUs think they’re a good idea. As Scott Wild, SVP of Consulting at John Burns Research, says:
“It’s gone from a small niche in the market to really a much more impactful part of new housing.”
Bottom Line
ADUs have some great advantages for buyers and homeowners alike. If you're interested, reach out to a real estate professional who can help you understand local codes and regulations for this type of housing and what’s available in your market.
