Are you struggling to find a home that fits your budget? Or maybe you already own a home but could use extra income or a private space for aging loved ones? If so, Accessory Dwelling Units (ADUs) might be the perfect solution for you in today’s housing market.
What Is an ADU?
An Accessory Dwelling Unit (ADU) is a separate living space on the same lot as a single-family home. According to Fannie Mae, an ADU must have its own areas for living, sleeping, cooking, and a bathroom—completely independent of the main house. ADUs come in different forms, such as:
✅ Within the main home (e.g., a basement apartment)
✅ Attached to the main home (e.g., an in-law suite over a garage)
✅ Completely detached (e.g., a backyard cottage or tiny home)
Why Are ADUs Gaining Popularity?
ADUs are in high demand. A recent survey found that 24% of real estate agents say ADUs are one of the top features buyers are looking for today. And it’s easy to see why—they offer flexibility, additional income potential, and creative housing solutions.
Top Benefits of ADUs
🏡 Extra Income – Renting out an ADU can help offset mortgage costs.
👵 Aging in Place – Keep aging parents close while giving them privacy.
👶 Built-in Childcare – Grandparents living in an ADU can help with babysitting.
👨👩👧 Multigenerational Living – Balance togetherness and independence.
Things to Consider
Since ADUs are secondary dwellings on a single-family lot, they typically can’t be sold separately from the main home (though some states are changing this). Local regulations vary, so be sure to check with a real estate expert to understand zoning laws in your area.
Bottom Line
Whether you’re buying a home with an ADU or considering adding one, it’s a smart option to explore. Talk to a local real estate agent to learn more about ADU-friendly properties and regulations in your area!