ADUs Offer an Affordable Housing Solution for High-Density Markets, but Who Will Call Them Home?

Not only do accessory dwelling units (ADUs) offer a practical space solution for caretakers, in-laws, and homeowners looking to downsize, but they also come at affordable price tags, allowing occupants to focus their savings on luxurious finishes and high-end appliances. Because they come at a fraction of the square footage of traditional single-family homes, ADUs also give builders an opportunity to increase housing supply in high-density markets.

As small home movement becomes more popular in an expensive post-pandemic housing market, the rise of ADU infill construction will give up and coming homebuyers a chance to add onto existing homes or to purchase individual units more affordably, says Sheri Koones in the New Home Insights Podcast.

• ADUs are an excellent rental option for singles and couples who need affordable housing options.
• ADUs are most prominent in markets with housing shortages and expensive urban centers.
• Conversely, smaller homes can even allow users to live in luxury at a fraction of the cost. Money saved on square footage can be used for higher-end finishes and nicer appliances.
• favorable demographics over the next 10 to 20 years.

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