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There’s plenty of reasons why ADUs are good for personal and financial reasons, which are described below. But, before we cover that, it’s good to understand the range of reasons why ADUs can be good for a community.
Personal Motivations for Building an ADU
The main motivations for homeowners wanting an ADU are due their potential to serve as extra sources of income and the residential flexibility that they can offer. By and large, the most common reason for building an ADU is financial.
Let’s say your one-bedroom ADU rents out for $750/month and your house mortgage is $1,500/month. Well, if you’re living in the house and renting out the ADU, you’ve just cut your mortgage in half to $750/month.
Alternatively, some homeowners may choose to live in their ADUs and rent out their main house, which is even more lucrative than renting out the ADU. That same homeowner above could live in their ADU and rent out their house for $1,500 covering their whole mortgage.
The other common reason for wanting an ADU is to have a standalone place for a family member, close friend, or partner to reside. While living in the same domicile may not be appealing for grandparents, parents, or their children, living in close proximity to one another can be very appearing for a range of pragmatic reasons. It is a common arrangement for grandparents to live in an ADU to help raise their grandchildren. Other common house/ADU arrangements may involve people who are providing bartered services for one another in exchange for rent; co-parenting, elderly care, caretaking.
Others may live in the main house, but will simultaneously use the ADU as an office, guest house for family, and a furnished bed and breakfast when the time is right.
There are host of flexible living arrangements that are provided by ADUs. Given the demographic shifts that we’re undergoing in the United States, it’s also fair to say that there is a market demand for smaller houses. Nuclear families are a diminishing demographic while single parents, and adult partners without children are on the rise. Small, alternative housing options such as detatched ADUs are in demand for this shifting housing demographic