An Accessory Dwelling Unit (ADU) is a secondary housing unit located on the same property as a primary residence.
These units are designed to provide additional living space and can serve various purposes, such as rental income, housing for family members, or guest accommodations.
ADUs are increasingly popular in urban and suburban areas where housing affordability and availability are major concerns.
Types of ADUs
There are several types of Accessory Dwelling Units, including detached ADUs, Attached ADUs, and converted spaces like garages, and each sub-category includes different variations.
For example, a converted space ADU could be a basement space that has been converted or an attic/garage.
Detached ADUs
These are standalone structures separate from the main house. Detached ADUs – also known as ‘DADUs’ – are often referred to as backyard cottages, granny flats, or carriage houses.
They offer the most privacy for both the occupants of the main house and the ADU.
Attached ADUs
These units are connected to the main house but have a separate entrance and living facilities.
This type of ADU can include additions to the home, such as a new wing or extension, providing an independent living space while maintaining proximity to the main residence.
Converted Space ADUs
Converted space ADUs are self explanatory – you take space that is previously not being used efficiently, like a garage or basement, and convert it into addition living space.
These tend to be cost-effective as you don’t need to build the space from scratch, but getting approval can be tricky.
Benefits of ADUs
ADUs offer several benefits, not only for homeowners but for the community as well.
Increased Housing Options
An underrated benefit of ADUs is the fact that they provide housing options in areas where housing shortages are a real problem.
They’re also quite affordable compared to a traditional rental, which can exacerbate this advantage even more.
Rental Income
A major benefit of ADUs is the fact they can be rented out to generate income.
This is especially helpful in today’s economic situation, where the price of home ownership has skyrocketed, and finding a place to rent is more difficult than ever.
Family Accommodation
ADUs are ideal for housing elderly parents, adult children, or extended family members. This promotes multigenerational living, allowing families to stay close while maintaining independent living spaces.
Property Value
Adding an ADU can increase the overall value of the property – up to 35% in some cases.
This is not only because of the cost required to construct an ADU, but also because of the opportunities it provides to a potential new owner. They can either enjoy the space and customize it to their preference, or rent it out and earn extra income.
Sustainable Living
ADUs often require fewer resources to build and maintain than traditional housing, contributing to more sustainable living practices.
A study by the American Council for an Energy-Efficient Economy found that due to their size and efficient use of space, ADUs allow people to live in areas closer to work, reducing their overall carbon footprint.
Local Benefits Of ADUs
ADUs are proven to benefit the local economy by providing affordable housing options that are then used by people who will continue to contribute positively to the local economy.
Regulations and Permit Considerations
Building an ADU typically requires compliance with local zoning laws and building codes.
These regulations can vary widely by location, so always consult with local planning departments to understand the specific requirements, including things like:
- Minimum Lot Size: Regulations often specify the minimum lot size required to add an ADU.
- Maximum Unit Size: There are typically limits on the size of the ADU relative to the main house.
- Parking Requirements: Some jurisdictions require additional parking spaces for ADUs.
- Setback and Height Restrictions: Regulations may dictate how far the ADU must be from property lines and the maximum allowable height.
Check out guide on new ADU laws in California in 2024 for an idea of how much the ADU landscape is changing each year.
ADU FAQs
We get a lot of questions about ADUs all the time, so let’s cover the most common ones.
What are the main types of ADUs?
The main types of ADUs are detached units, attached units, and converted space units.
What benefits do ADUs have for homeowners?
ADUs have a wide range of benefits for homeowners.
Not only do they help to increase property value, both from an investment and rental yield point of view, but they’re also great for homeowners who want extra living or working space that is separate from their existing space.
There’s a lot of flexibility when it comes to ADUs, which is one of the main selling points for this type of property.
What are the common regulations for building an ADU?
ADUs face a lot of regulations, so always check with your local government first and get expert advice if you’re planning to build one.
In terms of regulations, expect to see restrictions on minimum and maximum sizes, parking spaces, setback, height, energy efficiency, and much more.
Can ADUs be rented out?
Yes, ADUs can be rented out, providing homeowners with additional income.
However, rental regulations may vary by locality.
Are there financial incentives for building ADUs?
In some areas, there are financial incentives such as tax breaks or grants to encourage the construction of ADUs.
Wrapping It Up
An Accessory Dwelling Unit (ADU) is a versatile and beneficial addition to any property. By offering additional living space, rental income, and housing options for family members, ADUs play a crucial role in addressing housing shortages and promoting sustainable living.
Homeowners interested in building an ADU should research local regulations and consider the various types of ADUs to find the best fit for their needs. You can also use Presite to experiment with different ADU layouts and floor plans.
The popularity of ADUs in cities like Portland, Oregon, demonstrates their potential to enhance housing options and support community growth.