What Are ADUs?
Ever since 2020, home values have drastically increased. What used to be a modest home for under $200,000 is now costing close to $300,000 in some areas. This shift in housing costs is causing many to build or purchase an Accessory Dwelling Unit commonly known as an ADU. You may be asking “What is an ADU?” and if you have, you probably already know a little bit about this topic. In this blog we help unpack what ADUs are, the different styles, and much more.
What is An Accessory Dwelling Unit?
An Accessory Dwelling unit, or ADU, is an additional dwelling area on the same property as your home. This can be attached to your primary dwelling, or separate from your primary dwelling. What makes an ADU different than simply having a finished space like an attic or basement is that a separate entrance must be present from the main dwelling.
ADUs provide independent living and have a personal kitchen, bathroom, and entrance. Due to their size, these homes typically have one bedroom or are in a studio-like floor plan. Since this dwelling unit is independent, they also have varying floor plans and designs. Some ADUs are attached to the home (think of an in-law apartment), while others are detached (such as a backyard cottage). Because these housing units are built for permanent residency, they must adhere to building and zoning policies/codes.
In some states, you may not need to live on your property to take advantage of the ADU provisions. Check out our blog on the top 7 ADU-friendly states to learn more about these programs. Generally speaking, ADU-friendly locations tend to be in places with dense populations and a lack of housing.
Like the ADU above? Head on over to our ADU page. Select The A-frame ADU and see if this building is the right fit for your needs.
Do ADUs Impact Traditional Housing?
ADUs have a generally positive effect on the affordability of the housing market and the development of the areas in which ADUs are built. ADUs help the local housing market be more affordable but they also can cause some issues in neighborhoods. For example, in California, some neighbors have been stuck dealing with two-story ADUs becoming a bit of an eyesore in their communities. Yet by and large most people get the benefits of being in a nicer neighborhood at a more affordable price point.
What Are The Different Types of ADUs?
When people hear of ADUs they typically think of a granny flat in the backyard. Or they think of their first apartment that was above someone’s garage. Both of these are popular ADU styles. However, there are two main styles of ADUs Attached ADUS and Detached ADUs
Attached ADUs
Attached ADUs are accessory dwelling units that are attached to your primary residence. What makes an attached ADU different from your finished basement or attic is a separate entrance. Additionally, the space needs to have a full bathroom, bedroom, and cooking area.
Basement ADU
A basement ADU allows you to have someone living in your basement with a separate entrance. These spaces are the most popular when moving in aging parents because they typically have some kind of ground-level walkout. One thing to keep in mind with this kind of space is your water table. If your basement is prone to taking on water during heavy rains you should consult a basement renovation contractor.
Attic ADU
An attic adu is common, but not as popular attached adu. First, because an attic ADU requires a separate entrance the needed staircase can be quite an additional cost. Second many people are concerned about plumbing issues that could arise and cause leaking in their bedrooms.
Above Garage ADU
Above the garage ADUs tend to be the most popular style of ADUs. It is easy to have a separate entrance as it requires only one flight of stairs. Additionally, if any issues arise in the ADU it does not affect the primary residence as much as having the home directly attached to the ADU.
Built On ADU
The most expensive and often times least popular option of ADU is having a built-on ADU. A built-on ADU can be nice as it can be easily blended into the home. However, it can become quite tricky to meet the requirements of setbacks and needed sizing for coding when needing trying to build an accessory dwelling unit onto an existing house.
Detached ADUs
Detached ADUs are accessory dwelling units that are not directly attached to the home. These can be tiny homes on wheels, modular adus, or a renovated garage. Additionally, a detached ADU can be something as big as a small full-sized home.
Like the ADU pictured above? We do too! Head on over to our ADU page and select the Sonoma ADU. When you have more questions about it, contact us, we would be happy to help you every step of the way.
Park Model Tiny Home On Wheels
Park model tiny homes on wheels are homes that are built to meet RV standards. Yet in appearance, they do not look like a camper trailer at all. A common difficulty, with using a park model tiny home on wheels as an ADU is that they oftentimes do not meet the standards of construction code.
Want to check out this 3-bedroom park model home? Head on over to the park models page and select The Pinecrest. While you are there check out the other tiny home park models that we have to offer and see which one fits your needs the best.
Prefab Accessory Dwelling Unit
Prefab Accessory Dwelling units, or ADUs as we call them around here, are a great option to make more space in your home. A quality ADU will be built to meet all of your local building codes. One of the biggest benefits of selecting a prefab ADU is it will be built off-site in a factory. This ensures that deadlines are met, quality is ensured, and that the weather will not cause delays in construction.
Do you like the ADU pictured above? It is one of our more popular models. Head on over to our ADU page and select The Rockwood. When you are ready to discuss the layout and features of this ADU, give us a call at (610)593-4556. We will be happy to answer any questions that you may have.
Modern Cabins
Our modern cabins tend to be on the bigger side of what is acceptable for ADU Construction. However, a detached ADU needs only to fit the footprint allowed by the law. In some states, your ADU may be just as big as the main dwelling. This means if your home is 2,000 square feet, then any of the available modern cabins that we offer would be a suitable size.
If you like the cabin you see above, head over to our modern cabins page to learn more about The Woodland Cabin.
Log Cabins
Most people don’t think of Log Cabins as being an accessory dwelling unit. Yet depending on the size of your home and the requirements of your local government, they can be a viable option as they have all the requirements to be an ADU. In fact, some of our most popular log cabins start at sizes smaller than 700 square feet.
Interested in having your ADU be a beautiful log cabin? Head over to our prefab log cabin page and select The Pioneer. While you are over there, see if another cabin style fits the needs that you have even better.
How Much Do ADUs Cost?
Generally speaking, ADUs can cost $45,000 to over $100,000. It all depends on how much labor you are willing to do versus how much you hire out. The more work you are willing to do on your own, the more cost-effective your project will be. Keep in mind some states like California and New York offer grants to make updating or constructing an ADU even more cost-effective.
Since the cost of an ADU varies, you can expect to spend around $54-$200 per square foot. This means that if the minimum ADU you want to purchase is 600 square feet, anticipate a unit of that size to cost between $33,000 and $120,000. Once again, this cost can vary greatly but is remarkably cheaper than building a large custom home, making this one of the advantages of owning an ADU.
What Are The Advantages Of Owning An ADU?
Additional Income
ADUs can be a great source of “passive income”. Perhaps you never used your garage for more than storage. By converting your unused space into an ADU you can generate some income instead of waiting for your space.
Affordable Housing for Loved Ones
Affordable housing is difficult for nearly everyone. Especially those starting their life or those on a fixed income at retirement age. In having an ADU you can provide a great space for those you love no matter what season of life they find themselves in.
Flexible Use
ADUs do not just have to be used as living space. Perhaps you work remotely, have a hobby that takes up space, or want to start a business. Your ADU can be used for any of those things, all without tying up the use of your home.
Increased Property Value
Besides renting out the unit to increase income, owning an ADU will also increase your property value. A detached ADU will increase the value similar to a renovation, and some say to expect around a 30% ROI.
One of the biggest perks that we are beginning to see is that some cities are allowing you to sell your ADU separately from the rest of your home. Will this start a new kind of starter home ownership? Possibly, and we are here for it!
What Are The Disadvantages Of Owning An ADU?
Maintenance
When you add an ADU to your property, you are responsible for the upkeep of the unit. Essentially you are becoming a Landlord. If that idea does not sound appealing to you it would be best for you to consider a property management group to look over the ADU.
Property Tax Increase
Sometimes adding more to your home will cost you in more than one way. After the initial build of your new ADU, your property taxes may be increased. It is best to check with your local zoning boards what your tax implications may be.
Close Neighbors
We all have neighbors, that we deal with, and while some are great, not all of our neighbors are ones we would pick again. When you have an ADU you are welcoming people into close quarters with you and your personal property. If this is a family you love and trust it can be great. On the other hand, it’s becoming more and more challenging to get rid of tenants who don’t pay, are messy, or don’t treat your prosperity the same way you would. With having an ADU you are in the rare position to pick your neighbors, so choose wisely.
Resale Difficulty
While having an ADU will increase the value of your home it can also make it more difficult to sell. This is because not everyone wants to have a larger home like this or deal with a tenant who may have an existing lease with you. If the ADU on your property is attached and is vacant, it may not be too difficult to sell your home. But having an ADU can certainly deter some people from being interested.
Conclusion
Often called in-law apartments or granny flats, ADUs are Accessory Dwelling Units. This unit is a separate dwelling that can be either attached or detached to a home. Prefab and modular ADUs can also be purchased to minimize the time needed for on-site construction or installation. There are many pros and cons when considering an ADU so take inventory of what is most important to you.
When you have made your decision about what style of building will fit your ADU needs best, get in touch with us here at Zook Cabins. We will be happy to walk you through every step of the ADU process.