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October 12, 2023 | Hot Homeowner Accessory: Two Homes in One

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

More and more people are starting to understand that homes can be very expensive consumption items and ways to make them more efficient/lower per capita living costs are savvy. Secondary dwellings in primary residences are one way to do this. Whether to share shelter costs with friends, extended family, or caregivers or to generate rental income, multi-dwelling homes are valuable. See Tiny homes are hot new homeowners’ accessory:

The latest amenity for homeowners is another, smaller home.
These add-ons are known as accessory dwelling units. They can be free-standing miniature homes as small as a studio apartment and tucked away in a backyard. They can reside above a garage or in a basement and extend to more than 2,000 square feet.

ADUs are growing in popularity as states encourage their construction through zoning changes and homeowners seek ways to lower their housing costs by renting out these units. The typical cost to construct one is around $100,000, according to building-permit data company Builty.

“It’s gone from a small niche in the market to really a much more impactful part of new housing,” said Scott Wild, senior vice president of consulting at John Burns Research and Consulting. “Municipalities love it, existing homeowners love it, developers love it.”

Now, more home builders are starting to offer ADUs as amenities.

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October 12th, 2023

Posted In: Juggling Dynamite

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