With all the woeful news about affordable housing, it should be no surprise that ADU’s are red hot.
An ADU (Accessory Dwelling Unit) is a secondary housing structure placed on the same property as the primary residence. As reported here, “In recent years, the rise of ADUs (Accessory Dwelling Units) in the United States has been nothing short of remarkable. According to Freddie Mac, first-time listings of ADUs on the MLS have increased on average 8.6% year-over-year since 2009! ADUs have captured the imagination of homeowners, real estate investors, and policymakers alike, thanks to their potential to address multiple housing challenges.”
ADUs can serve as guest houses, home offices, or even rental units. There’s a huge range in size, design, functionality — and cost. Overall, “ADUs are the last expensive and quickest housing options to build.”
ADUs can address many situations of particular interest (and need) for SuperAgers:
— Multigenerational housing — SuperAgers live in the ADU, adult children (who may be frozen out of the high-cost-of-entry conventional housing market) live in the main residence. Or the other way around.
— “Aging in place” features — Many ADUs incorporate safety and convenience features, including high-tech sensors and alarms, motion-sensitive lighting, motorized countertops and other amenities
— Rental income — SuperAgers looking for more income and cash flow can use the ADU to generate rental income.
— Home office
— Increase in property value
ADUs can be built either conventionally, on-site (stick built) or be built off-site as modular or pref-fab units, which typically cost less. Most municipalities, aware of the housing affordability issue, are recognizing the potential of ADUs and reducing bureaucratic (i.e., building permit) hurdles while providing financial incentives.
Check this article out for an eye-opening list of some of the amenities that are now part of ADU packages.
It seems clear this is a topic we’ll be returning to with more and more frequency in the future. The trend might just be getting started.
(Photo credit: Elena Morgan at iStock by Getty)