Why ADUs Are Saving the Real Estate Market
The Live 40" by The Container Box, Inc. Base Price: $67,500
Right now, more than ever, people need options. Options on housing elderly relatives with care needs; options on acquiring affordable housing; options on generating passive income, especially in light of Depression-era unemployment rates.
And in a market that is consistently peaking all-time highs in rising real estate prices, options are the thing that seem to be dangerously slim. Thankfully, ADUs are salvaging the wreckage of the real estate market.
ADU’s can not only add value to your property but also your quality of life. According to The National Association of Home Builders that, within the first 3 months of last year, 20% of US home improvement projects consisted of ADU conversions and constructions.
Everyone from homeowners to local ordinances is rethinking the functionality and benefits of ADU, which is why developments are popping in mass across the country. Here are some very real ways ADUs are taking the real estate market by storm, and the reasons why.
ADUs create affordable housing
Middle-income families are getting priced out of the middle-income neighborhoods that, in comparison to 5 or 10 years ago, are exponentially skyrocketing in price. That’s where ADUs come in with a savvy solve.
Neighborhoods that implement accessory dwelling units into their development increase the quantity of homes available while dually creating cost-accessible options in comparison to traditional constructions and apartment housing.
And in the general sense, renting out units in a neighborhood supplies the need for affordable housing in densely populated areas, combating the issue of fast-declining development space (which drives market prices up).
ADUs can be a safety net
Right now, many people are finding their ADUs to be lifesavers. With the unexpected and devastating rise of COVID-19, many Americans have lost their jobs, cannot find employment, and can only limitedly perform the jobs they did pre-pandemic. It’s more than our wallets taking a hit-- the US economy is in a literal free fall.
For homeowners who have invested in ADU developments in the past few years, there is a viable option on the table in regaining some sort of financial stability -- renting out their unit to tenants. This means generating a consistent secondary income that could supplement financial hardships within these uncertain times.
And with many people displaced from housing (or very nearly so) due to job loss, there are many families and single tenants looking to downsize on space, and on costs.
ADUs create spaces for elder care and assisted living
Accessory dwelling units are an essential structure to multigenerational families and relatives in need of care and mobility-accommodated living spaces. ADUs come equipped with an independent kitchen, bathroom, and sleeping quarters and can not only be physically attached or detached from the primary dwelling, but also looped into its utilities system.