Accessory Dwelling Units (ADUs) have emerged as a popular choice, offering immense potential in this regard. Also known as an in-law or mother-in-law unit, secondary dwelling unit, granny flat or backyard apartment, ADU’s are on the rise. There has been a significant increase in demand for ways to finance their construction in recent years, especially since changes to California law mean that it is now easier than ever to build one in a single-family zone.

ADUs are rising in popularity which may leave you wondering what does ADU stand for?

ADU stands for “Accessory Dwelling Unit,” which is a secondary residence or structure on your property. Meaning this structure must function on its own as a dwelling, but it wouldn’t have a separate address. Accessory Dwelling Units (ADUs) open a lot of doors for homeowners.

With an ADU unit, Grandma can have her own independent space, your college graduate that moved back in can get some alone time, or you can use it as a space for Airbnb or rentals. That being said, many homeowners struggle with proposing ADUs that meet their local planning department’s requirements, obtaining the necessary permits, and finding an honest and reliable construction team. However, those who have constructed ADUs note the benefits that these units provide; for example, creating a source of supplemental rental income or providing multigenerational housing.

With rising real estate costs, ADUs are becoming more popular than ever. They are an excellent value proposition for current and prospective homeowners. 

It’s safe to say that the current housing market is pretty confusing. Convoluted with rising high-density housing options and increasing mortgage rates, many people aren’t as eager to move as they are to find creative ways to maximize the available living space on their property.

And if you have the land, why not use it? Building an ADU in your backyard may be a great option if you have the space. For starters, it can significantly increase your property value. But depending on your needs, it could provide an additional passive income source. Win, win.

So you’ve heard the buzz about Accessory Dwelling Units (ADUs) and have been doing a little research. You’ve found some info on the cost of an ADU and are now wondering if that price is worth it. Will adding an ADU to my home actually increase my property value?

While the actual value of an ADU depends on several factors — such as its size, quality, and local housing market — the answer is still certain: yes, it will.

One of the toughest parts of building an ADU is deciding on a floor plan that meets all of your area’s construction rules, and getting this floor plan approved by local officials.

A solution: pre-approved ADU floor plans. You’ll likely get through the permitting process more quickly if your floor plan has been used and approved before.

Whether you’re considering a 1 bedroom ADU or a 2 bedroom ADU, an ADU converted from a garage, an ADU attached to the house, or a stand-alone detached ADU, there are many example floor plans that you can use that have been pre-approved.

Did you know a garage conversion is the most cost-effective way to add an ADU to a property? While you may have to sacrifice additional parking and storage, the benefits of creating a livable space are hard to ignore.

And in some states, an ADU garage conversion is relatively easy. In the midst of a serious affordable housing crisis, California, for example, allows any property in a single-family residential zone to build a garage ADU. And many other state leaders have sought ways to create more homes and have agreed upon ADUs as one solution.

Are you considering renting your ADU to a tenant but not sure if it’s a good idea? Or maybe you just aren’t sure where to start. Well, an ADU can be a great source of rental income and a very profitable investment in the long run — if it’s managed properly. The potential earnings and benefits you could experience from an ADU rental could help supplement your mortgage payments, retirement savings, or vacation fund. Sounds pretty good, huh?

An accessory dwelling unit (ADU) is an independent living area located on the same lot as a family home within existing neighborhoods and on existing legal lots.

In the last decade, California’s population growth has outpaced home construction. In fact, California built less than half of the homes needed to keep up with the population growth. This lack of housing is greatly impacting affordability and causing average housing costs, particularly for Bay Area renters, to skyrocket.