Where affordable housing is scarce, these secondary homes may be the answer. Here\u2019s what you need to know about today\u2019s version of the mother-in-law apartment.<\/p>\n
When Jeni Nunn, an agent with Intero Real Estate in Santa Clara, Calif., and her husband bought their 1,270-square-foot house, they planned to use its deep backyard to build a pool or playground. But they switched course when Nunn\u2019s dad and mom (diagnosed with Parkinson\u2019s) couldn\u2019t find an affordable condo nearby. Instead, four years ago, they built a 640-square-foot, wheelchair-accessible, one–bedroom house, with room for their baby grand piano, for $160,000\u2014a bargain in the Bay Area. \u201cFor us, it\u2019s the perfect scenario,\u201d says Nunn, who is also a mother of four. \u201cI can send my 3-year-old into the backyard. \u2018Go to grandma\u2019s house!\u2019\u2009\u201d<\/p>\n
Nunn\u2019s own build-out put her at the leading edge of the movement to address one of today\u2019s most vexing real estate problems: the need for affordable housing in areas with tight inventory. These secondary residences, known formally as \u201caccessory dwelling units,\u201d have become a popular alternative in high-demand areas of the U.S., from Washington, D.C., to Seattle. And local governments are increasingly passing measures that makes it easier for homeowners to build and rent out ADUs. The homes are permanent, with their own entrance, kitchen, and full bath. \u201cIt\u2019s a self-contained dwelling on the same property as a standard single-family home,\u201d explains Martin Brown, a researcher who co-edits AccessoryDwellings.org and rents out an ADU on his Portland, Ore., property. While much attention has been paid to the rise of tiny homes under 400 square feet, the emergence of compact ADUs has been similarly swift, if with less hype.<\/p>\n
No one tracks the total number of ADUs, but Kol Peterson, author of Backdoor Revolution, creator of the \u201cBuilding an ADU\u201d online guide, and co-founder of AccessoryDwellings.org, estimates that the country is home to 25,000 to 100,000 permitted units and several million unpermitted ones. Since California loosened its restrictions in 2016, the number of applications in Los Angeles alone increased from 90 in 2015 to nearly 2,000 in 2017. With permits, cities make sure the units are safe and also capture property tax revenue.<\/p>\n
The idea behind accessory dwelling units is hardly new. \u201cIt used to be the case that it was quite normal to have someone living above the garage or in the basement,\u201d says Patrick Quinton, CEO of Portland, Ore.\u2013based Dweller, which builds ADUs in a factory so that on-site construction takes only 30 days. In fact, Thomas Jefferson lived in basically an ADU while Monticello was being built, says Eli Spevak, co-founder of AccessoryDwellings.org and an affordable housing developer in Portland, Ore.<\/p>\n
So-called mother-in-law units grew at a time when multigenerational living was more common, but in cities like Washington and Philadelphia, people replaced the little home in the back with garages. Interest in ADUs is rising at a time when the average family size has fallen to an all-time low of 2.6 individuals and people have become \u201coverhoused,\u201d says Rachel Ginis, executive director of Lilypad Homes, an education and advocacy group for ADUs in California\u2019s Bay Area. ADUs fall under \u201cin-fill housing\u201d\u2014ways to squeeze more homes into walkable, bikeable high–demand areas. \u201cA third of the population is in one- or two-person households,\u201d says Peterson. \u201cWe\u2019re not building the right kind of housing for the population we have right now.\u201d<\/p>\n
As ADUs become more prevalent, it\u2019s important to consider how they may affect a transaction. \u201cIt\u2019s like looking at a pool,\u201d says Nunn. \u201cThere are people who love a pool and will give more money. There are people who [say], \u2018I\u2019ll never have a pool\u2019 and see them as an invasion of privacy.\u201d Nunn urges buyers to think about a property\u2019s ADU potential even if it\u2019s not a priority feature. \u201cI encourage my clients to pay attention to the lot size of homes, especially if they have aging parents in the area. Even if they can\u2019t afford to do an ADU immediately, I try to show them the value of having the option to do it in the future.\u201d<\/p>\n
Looking good<\/strong><\/p>\n What are the secrets to ensuring an accessory dwelling unit is not an eyesore? \u201cA lot of people really take pride in their units,\u201d says David Garcia, policy director of the Terner Center for Housing Innovation at the University of California, Berkeley. \u201cSometimes they even look nicer than the primary residence.\u201d For example, Kol Peterson and his wife live in an 800-square-foot \u201cdream house\u201d ADU with a king bed, radiant in-floor heating, and a 10-foot movie screen. (They rent out their main house for $3,000 a month, which more than covers the $1,700 mortgage.) Some tips :<\/p>\n Match the main home\u2019s exterior.<\/strong> Cities typically require it, though places like Portland, Ore., and Seattle are relaxing those regulations. \u201cModern is in right now,\u201d says Valley Home Development\u2019s Steve Vallejos. But it tends to be more expensive and may not fit in as well in some neighborhoods. Many opt for a match to the main house. \u201cMost clients are coming to us with the assumption that the ADU is going to be a miniature version of their existing house.\u201d says Vallejos. Homeowner Lisa Fontes, whose primary house, a colonial, is dark brown with maroon trim, is building the ADU on her Massachusetts property to be lighter brown with maroon trim.<\/p>\n Place windows as high as possible.<\/strong> They let in more light. \u201cUse higher, not just bigger, windows and doors,\u201d says ADU architect Ileana Schinder. \u201cThat brings light deeper into the apartment.\u201d<\/p>\n Consider vaulted ceilings.<\/strong> They create a spacious feeling. \u201cThe key is natural light,\u201d says Schinder.<\/p>\n Create open spaces.<\/strong> Avoid hallways. \u201cWhy waste square footage?\u201d says Schinder. Put the laundry in the kitchen, and make closets for reaching into rather than walking into. Recess fixtures like medicine cabinets.<\/p>\n