Are you currently looking for a new home but having a tough time finding one that fits your budget? Or maybe you're already a homeowner and could use some extra income or a place for your loved ones. Well, there's some good news for you! Have you ever heard of accessory dwelling units, or ADUs for short? They might just be the solution to help you achieve your goals, whether you're a potential homebuyer or a homeowner with changing needs. ADUs can provide the flexibility and options you're looking for.

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.”
”

— AARP

If you're wondering if an ADU is a good idea for you as a buyer or homeowner, I've got some helpful info and benefits to share with you. Just remember, the rules for ADUs can be different depending on where you live, so it's a good idea to ask a local real estate expert for more details.

The Benefits of ADUs

Freddie Mac and the AARP have identified some awesome perks of ADUs for both buyers and homeowners. They're like little homes within homes, offering great value and flexibility. It's a win-win situation!

• Living Close by, But Still Separate: Looking to live with your loved ones while still having your own space? Consider an ADU! It lets you be together and help each other out, but also gives you privacy when you need it. If this sounds good, think about buying a home with an ADU or adding one to your current house.

““Having an accessory dwelling unit on an existing property has become a popular way for homeowners to offer independent living space to family members.”
”

— Freddie Mac

• Aging in Place: ADUs are great because they let older folks stay close to their loved ones who can lend a hand as they get older. It's like having the best of both worlds – independence and support from family. So, if your parents are aging and you want them nearby, consider buying or adding an ADU to your house.

• Affordable To Build: ADUs are usually smaller, so they're cheaper to build than big standalone homes. Plus, having one can boost your property value.

Generating Additional Income: If you have a home with an ADU or if you build one on your land, it can help you make money from renting it out to pay your mortgage. Just remember that in most cases, you can't sell the ADU separately from your main house. However, this rule is changing in some states. Get advice from an expert to know all your options.

Here's why lots of people who benefit from ADUs think they're a great idea.

““It’s gone from a small niche in the market to really a much more impactful part of new housing.”
”

— Scott Wild, SVP of Consulting at John Burns Research

Bottom Line

ADUs can be a really good option for both buyers and homeowners. If you're curious or interested in learning more, just get in touch with a real estate professional. They can guide you through all the local rules and regulations for this type of housing and let you know what's up for grabs in your area.