While typically small in square footage, accessory dwelling units deliver affordable housing at a time of great need.
The Need Is Real
Reasons for interest vary but the most prevalent may be that ADUs are making a dent in the country’s housing supply shortage. “They’re not the only solution but one tool in the toolkit,” says developer Denise Pinkston, a partner of San Francisco–based TMG Partners and president of Casita Coalition, a Los Angeles–based group whose goal is to increase the number of small homes throughout California. “We’re in favor of finding ways to help people gain a home since the down payment needed has eclipsed the ability of most working families,” she says. Spevak agrees: “They’re a way to build less-expensive housing without public subsidies since they’re often less costly to rent or buy than other neighborhood options.”
For older adults on fixed incomes, ADUs allow aging in place, which otherwise may be difficult, says Harrell. “Our neighborhoods are 80% single-family housing,” he says. ADUs also serve as guest houses, home offices, quarters for grown children and dwellings for natural disaster victims. (ADUs differ from tiny houses, which are under generally less than 400 square feet, often atop wheels, and not permitted on residential properties for the long term.)
Additionally, ADUs can be a way to earn rental income or make a property more flexible as family needs change, says Portland, Ore., broker Aryne Blumklotz of Aryne + Dulcinea with Living Room Realty. Her business partner, broker Dulcinea Myers-Newcomb, added a 458-square-foot prefab ADU on her property to house her father in 2018. It may become a rental to help pay for her children’s college tuition.
Where ADUs Are Taking Off
Since 2000, when AARP issued the first edition of a model state act and local ordinance, more states have adopted legislation that effectively allows ADUs and preempts local prohibitions. AARP’s Livability Index tracks statewide ADU legislation. The index credits California, Florida, Hawaii, Maine, Montana, New Hampshire, Oregon, Rhode Island, Vermont, Washington and the District of Columbia for having legislation that encourages or supports ADU development.
California started by allowing conversions of existing structures with a building permit, regardless of local zoning laws. Over time, it removed such barriers as owner-occupancy requirements, homeowners association prohibitions and limited parking requirements. It reduced fees and finally permitted state-allowed freestanding ADUs in a yard of a single- or multifamily site, regardless of local standards, says Pinkston. It also allowed ADUs in unused areas of multifamily buildings like attics or bike rooms.
“In just a few years and through a pandemic that slowed other housing types, the California results have been impressive,” Pinkston says. “More than 65,000 ADUs have been added across its cities, suburbs and rural areas, all starved for workable housing options.”
National Association of REALTORS®
Reprinted with permission
