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

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Infill Housing

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

The rising popularity of accessory dwelling units in the residential market is celebrated by builders looking to add supply to existing neighborhoods, but which homeowners will benefit from reduced square footage?

July 5, 2022
Small accessory dwelling unit in a backyard
Image: Stock.adobe.com

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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