Affordable Housing? Think Small (maybe an ADU?)

Audree Grubesic
May 16
2 min read

Updated: May 17

By John Phillips of Verdant Living

ADUs have gotten a lot of attention recently as a housing option; this is the first in a series examining that option. Off site construction would seem to be a natural for these mini homes.

ADUs (accessory or additional dwelling units) are a wonderful idea. They utilize an existing piece of residential real estate and create a separate living space. They have been around for a long time. In the TV series Happy Days, Fonsie lived in one, on top of a garage. And often they have been a converted basement. They can be a separate buildings, usually in the backyard. Until recently, zoning regulations made that difficult to do. Throughout the United States, as a part of the need for more housing, zoning codes are being changed to allow ADUs.

There is a legitimate concern that ADUs would only make sense for well off home owners and not for home owners of moderate means and thus not add to affordable (also referred to as attainable) housing. Up to now, many detached ADUs that have been built by relatively well off homeowners and have been relatively expensive. They really don’t qualify as affordable.

So, can ADUs play a role in affordable housing? Absolutely, for a very understandable reason. They are smaller. The smaller living space is less expensive. Is it for everyone? Of course they are not for everyone, but the well designed living spaces are comfortable and mimic the way most of us live, which in just a few rooms anyway. They are perfect for intergenerational housing (AARP loves them), young adults as starter homes, couples without children. ADUs are part of a larger movement emphasizing smaller, high quality living spaces. There are entire developments of smaller homes on smaller lots, some ADU sized (mini homes).

Affordability characteristics:

Cost. Because of their small size ADUs offer a more affordable option compared to traditional homes, making homeownership accessible to a broader segment of the population, including young adults and seniors. Obviously, off site construction can reduce costs also.
Housing stock. By integrating ADUs into the housing market, communities increase the overall housing supply, especially when they are located in areas facing affordable housing shortages.
Operational expense. Because of their smaller footprint, ADUs require less heating and cooling, as well as less long term maintenance.
Versatility. ADUs can serve various housing needs, including for family members or as rental properties, providing the home owner with an additional income source.
Land cost. This is a big one. When the ADU is a backyard bungalow, it utilizes land that involves no extra cost. For a stand alone mini home, the size of the real estate is much smaller.