The concept of accessory dwelling units (ADUs) has gained significant popularity in recent years, offering a solution to the housing shortage across the nation. In the past, proposing new homes in existing neighborhoods was often met with resistance from local officials, but today, politicians and homeowners are embracing ADUs as a way to increase affordable housing.
Los Angeles, for example, has seen a surge in ADU permits, with over 7,000 units permitted in 2022. Other states such as California, Washington, Massachusetts, and Arkansas have followed suit, albeit at a smaller scale. This trend is attracting homeowners like B.J. May, who built an ADU on his parents’ property in Massachusetts to help his family.
ADUs offer a “missing middle” solution, providing smaller units for families and retirees to make ends meet with rental income or downsize. They also ease the burden on the climate by reducing the number of units built in far-flung suburbs. The math for homeowners is attractive, with higher home values (35% more than comparable homes without an ADU) and rental incomes of $2,000 per month.
However, building an ADU can be a complex process, requiring careful consideration of financing, property management, and regulations. To determine if an ADU makes sense for you, consider the following steps:
1. Decide why you want an ADU (it changes everything)
2. Confirm it’s legal
3. Do a financial feasibility check
4. Design your dream ADU
Experts and ADU owners stress the importance of considering these factors to ensure that building an ADU is a financially viable option for homeowners.
While ADUs are not a panacea for the housing shortage, they offer a valuable solution for families and retirees looking for affordable housing options. By embracing this trend, Americans can unlock a new way to cash in on their homes and create more sustainable living spaces.
Source: https://www.washingtonpost.com/climate-environment/2026/02/24/adus-backyard-home-build