Why Are ADUs Becoming the Next Big Trend in Real Estate?

As the demand for affordable housing continues to rise in California and across the United States, ADUs are becoming increasingly popular solutions to many of the challenges facing the housing market.

In this article, we will discuss the reasons why ADU housing is becoming the next big thing in the real estate industry, your options if you’re looking to build your own, and the best reasons why more and more homeowners are turning to ADU housing.

What are ADUs?

Accessory Dwelling Units (abbrev. ADU) are accessory homes constructed beside, near, or in conjunction with a pre-existing family home on the same property. 

These small houses include a bathroom and a kitchen, making it suitable as a standalone unit either for family members to live in or to rent out for passive in pcome. However, for its kitchen, there’s an option either to put a fully equipped one or just a sink and a stove. Adding a separate entryway and parking space for ADUs will also depend on your ADU’s purpose.

ADUs can come in all shapes and sizes. Here are the types of ADU that you can consider adding to your property:

Detached ADU

Often located at the back of the main house, Detached ADU gives more privacy and independence as they usually come with separate utility and sewer lines for their occupants. This ADU can be designed to complement the style of the main house or to have a unique look of its own.

Attached ADU

An Attached ADU is physically connected to the main house and divided by a wall with the option of putting a separate entryway depending on its purpose. 

It is more cost and time-effective than its detached counterpart as it requires less time and resources to make.

This unit works best for those who want to create an additional living space without having to pay extra for a separate structure, utility, and sewer lines.

Basement Conversion

As the name suggests, it’s the process of converting your pre-existing basement into a living space. Same with an Attached ADU, a basement conversion has its utilities and sewer lines hooked to the main house. The process of this conversion takes even less time and funding to build.

Garage Conversion

Same concept as the basement conversion, a garage conversion is the process of converting your pre-existing garage into a living space equipped with a kitchen, bathroom, and an optional separate entrance. It’s very cost-effective and quick to build.

5 Benefits Of ADUs Supporting Its Rising Trend

As property prices increase and housing becomes more challenging, more people turn to ADUs as a housing solution. Here are five benefits that ADUs bring.

Increased housing availability

Local homeowners who construct rental ADUs help address the problem of housing shortage in areas with high demand, such as California, by creating more affordable housing options for tenants. 

Improved affordability

ADUs also help provide more affordable options to low to mid-income families in the US, ADUs shouldn’t just be viewed as another tiny home. It’s a way to help less affluent families save on housing costs so they can reallocate their income towards other basic needs.

Opportunities for multigenerational living

Building an ADU on a property that your family already owns is ideal if you’re on a budget. Not only that you’re getting an opportunity to save more money, but also experience multigenerational living if you’re someone who doesn’t mind living close to your relatives.

Enhanced rental income potential

The local government allows homeowners to rent out eligible accessory dwelling units that complied with certain standards and regulations. It gives local homeowners a chance to generate income by renting out their ADUs.

Increased property value

The value of any property appreciates as more money is spent to add more features and functions. Adding an ADU to your property increases its value as it’s considered an added feature. Ultimately, ADUs have the ability to generate income by renting them out. 

Final Thoughts

As ADU housing rises in popularity, it’s safe to assume that more people are starting to realize the real value of their property and the possibilities that they can do to stretch its value even further.

ADU housing is poised to become a vital part of the real estate market in the near future and aims to not only be a trend but a permanent solution to major housing problems across the United States.