Are Accessory Dwelling Units Worth the Investment?
November 5, 2018
Multi-generational living is at an all-time record high and is only growing. We’ve designed homes that make this lifestyle more enjoyable by having a private “in-law” apartment-style home attached to the main home. Residents can be together in common living areas but can also be alone by choice. Two of everything in one household might sound expensive, but many municipal codes are now allowing design options that make multi-generational very affordable.
WHAT IS IT?
If you’re not ready to make the dive into the long-term decision of moving and buying a multi-generational home, consider an Accessory Dwelling Unit (ADU). An ADU is additional living space that is added on later to the main residence. It can be detached from the main home but is still legally considered a part of the main home. These ADUs are equipped with their own kitchenettes, bathrooms and living spaces. Think of it as a tiny home in your backyard. Having an ADU can add additional income as a rental option, can increase the value of your initial investment and it’s an affordable housing option for those who are looking.
AFFORDABLE HOUSING FOR BIG CITIES
As land costs rise in many larger cities, ADUs are becoming more mainstream. We are in the drawing stage right now with a client to design a home with an accessory dwelling unit attached, including separate stairs and entrance. Our goal with this client is to find a creative solution to two different issues: High land costs and tight inventory for affordable housing. The site is in the heart of Austin, a college town where an ADU is perfect for current students or post-grad lifestyles while adding income for the homeowner.
An ADU gives your current home the flexibility it may need as your priorities change over time. An ADU can be used as an in-law suite, Airbnb, long-term rental or any type of flex space the owner wants. It’s a way to bring in some extra money if you choose to rent it out but is also a much more affordable option than deciding to invest in a multi-generational home. At the end of the day, ADUs and multi-generational homes offer similar lifestyles, so it comes down to how their floor plans function within the given market.