More Families Want Homes with Accessory Dwelling Units (ADU)

When it comes to caring for elderly family members, people look at nursing homes as a last resort. The on-going pandemic has made nursing homes even less of an option and instead of putting their loved ones in one of these facilities, they’re moving their elderly loved ones in with them. According to HomeLight’s End of the Year Report for 2021, accessory dwelling units (ADU for short) are in high demand.

In fact, real estate agents say 47% of homebuyers in the Mountain regions and 64% of buyers in the Pacific region want a home with an ADU. One of the reasons demand is so high in places like Bakersfield, California is because California created legislation to make it easier for ADUs to be constructed.

What are ADUs used for?

The primary reason people want an ADU is to care for loved ones, be they an elderly family member or adult children who need a place to live for one reason or another. More specifically, most realtors (61%) say that when a family wants an ADU, an elderly parent will be living in it. Whereas 35% of realtors say it will be the homeowner’s adult children who will be using the ADU.
Homeowners aren’t just using accessory dwelling units for their loved ones. 32% of real estate agents report that clients intend on using an ADU to generate extra income by listing it on a site like VRBO. 41% say their clients are using them as a home office and a meager 16% say clients will be using the space for a home gym.

What are the most common ADU structures?

Nearly one third of real estate agents who participated in the survey said that homeowners are building a detached unit on their property. A detached unit simply means that it is a standalone structure that doesn’t share any walls with the main residence.

On the other hand, there are some homeowners (24%) who will build an ADU that shares at least one wall with the main residence. Less common types of ADUs include a basement or attic conversion and an apartment constructed over a garage.

Can ADUs add a lot of value to your property?

Seeing as ADUs are in high demand right now, having one of these structures on your property certainly can increase your property’s value. On average, that would be a 38% increase ranging between $47,597 to $65,908. However, if you’re on the Pacific coast, that figure can be in the six figures.

As much value as these units can add to your property, it may not be in your best interest to build a new structure. Why? Because a newly constructed ADU costs (on average) $77,239. In some areas, you could see a 15% loss on your investment.

Keep your family together with an ADU

Our families mean everything to us and there’s nothing that we won’t do to make sure they are cared for – even if that means moving them in with us. The coronavirus pandemic has made many families rethink their decision to put elderly loved ones in nursing homes and as a result, we saw a huge spike in the demand for accessory dwelling units. Who better to care for loved ones than family, right?

It isn’t just families who want an ADU on their property. ADUs have a multitude of practical uses outside of a place for loved ones to live. They can be turned into home gyms or offices. They can be turned into a short-term rental space. Heck, there are so many different uses for these structures that it’s no surprise why they’re in demand!