5 Benefits of Installing an Accessory Dwelling Unit at Home

There are approximately 142 million housing units in America. That sounds like a lot, doesn't it? With that much housing available, everyone can find housing, right?

It turns out that 142 million just isn't enough. There is a severe housing shortage afflicting the U.S. It is a big part of the reason that house prices soared to the levels they did in recent years.

Some locations are turning to accessory dwelling units or ADUs as a fix. Of course, installing an ADU also provides some benefits to the property owner. Keep reading for five of the key benefits.

What is an Accessory Dwelling Unit (ADU)?

These are homes with small square footage, usually 800 square feet or less. They are built typically in the backyard of an existing home. Other names include cottages, tiny homes, and granny flats.

1. Boost Property Value

One of the major benefits of an ADU is that it can help boost your property value. The building itself adds value to your property.

Beyond that, the ADU can make your property more attractive to potential buyers. They might see it as a convenient space for a remote office or even an opportunity for some passive income generation.

2. Rental Income

Speaking of passive income, building an ADU can also serve as a passive income generator for you. In areas with particularly tight housing markets, you can rent out your ADU.

You could potentially rent it out to young professionals or college students. While you won't recoup your investment fast, it is a way to create a regular revenue stream beyond your own job.

Plus, you still get the boost to property value. If you plan on moving down the road in five years, it can prove a sound investment.

3. Low-Cost Senior Housing

Senior care facilities are an expensive proposition. That's particularly true if your senior family members only need modest assistance. A tiny home on your own property can give them a place to live at a much lower cost. It also gives them some privacy, while letting you help out when they need some assistance.

4. Room for Guests

If you don't have a large home, guests can prove a massive disruption to your life. An ADU gives guests somewhere to stay which reduces their overall disruption to your lifestyle.

5. Adult Children

With real estate and rental prices still riding fairly high, a lot of recent college graduates can't housing. An ADU provides them with a place to live that's separate from your home, but that also won't drive them into near bankruptcy.

Is Installing an ADU for You?

Installing an ADU is pricey up front, but it also offers many benefits. You see an immediate increase in your property value. You can also use it as a source of passive income.

An ADU can provide a cheaper senior living option, particularly for generally able-bodied seniors. You get a place for guests to stay that minimizes their disruption to your lifestyle. It's also an option for offering your adult children a less expensive housing option.

Old Country Building Sales specializes in building sales, including tiny homes. For more information about our building options, contact Old Country Building Sales today.