7 Benefits of an Accessory Dwelling Unit

In-law cottage. Pool house. Carriage house. Secondary apartment.

Accessory dwelling unit products (ADUs) go by many different names and take many different shapes. No matter what you call them, however, there is no denying that they are becoming more and more popular. According to Freddie Mac, the number of first-time listings of ADUs increased 8.6 annually between 2009 and 2019.

Are you interested in adding one of these dwellings to your property but not sure if it’s worth the effort? Here are seven reasons why ADUs can benefit your property — and your community.

1. ADUs increase property value

What homeowner doesn’t want to increase their property’s value as much as possible? According to some reports, an ADU can increase your home’s value by as much as 30%.

2. They add options in your community

According to the U.S. Department of Housing and Urban Development, ADUs can help to increase the housing supply of any given community without the need to build new infrastructure such as roads in the area. At the same time, they often cost less than new or single-family homes on a separate lot, they can offer quality, affordable housing options to low- and moderate-income residents.

3. They add comfort

As the nicknames suggest, ADUs add options for guests when they come for visits. That way, whether it’s your parents coming for a long visit or in-laws coming to live with you, everyone on the property gets the benefit of living together while keeping a sense of independence and privacy that you wouldn’t get if you were all residing in the same structure together.

4. They add income

When you add an ADU on your property that has its own kitchen, bathroom, and entrance, you can easily rent them out and add income to your monthly bottom line.

5. They are low impact

The good news about ADUs is that they can easily be a sustainable addition and require less electricity to heat, cool, or manage.

6. They are less expensive to build

If you want to build a new ADU on your property or renovate an existing space, the good news is they will require fewer materials and less time to build than a brand new, independent structure. This means the budget to get these buildings up and livable will be much smaller than a whole new house.

7. They can help family dynamics

Do you need to keep your parents close to you for their health and care as they get older? Are you hoping that your children will want to stay close to home when they graduate from college? An ADU could help make these goals easier to obtain since you will have a ready-made place for your family to reside.

Once you decide that an accessory dwelling unit is the right move for you, your family, and your property, don’t start building right away. You will need to take the time to research your options and the ordinances in your neighborhood and community when it comes to adding these properties.