What Are Accessory Dwelling Units and How Can They Benefit You?

Are you in the market for a home but can't find the right one to match your budget? Maybe you’re already a homeowner looking for extra income or a place for your loved ones. It could be worthwhile to consider accessory dwelling units, or ADUs for short. Whether as a potential homebuyer or a homeowner with changing needs, these homes may be the solution to achieve your goals. 

What Is an ADU?

AARP defines them this way:

“An ADU is a small residence that shares a single-family lot with a larger, primary dwelling.”

“An ADU is an independent, self-contained living space with a kitchen or kitchenette, bathroom and sleeping area.”

“An ADU can be located within, attached to, or detached from the main residence. It can be created out of an existing structure (such as a garage) or built anew.”

How do you know if an ADU makes sense for you as a Kansas City buyer or a homeowner? One important thing to be aware of is that regulations for ADUs vary based on location. While connecting with professionals from the Just Say Home Team is the most precise way to gain information, here is a starting point of helpful information and the potential benefits ADUs can provide.  

What Are The Benefits of ADUs?

Freddie Mac and the AARP identify some of the top features of ADUs for both Kansas City buyers and homeowners:

• Live Separate, but Still Close By: ADUs give loved ones the ability to live together while maintaining separate spaces. You can enjoy each other’s company and even help with things like childcare but still have the necessary privacy. If a living situation like this appeals to you, consider buying a home with an ADU or adding an ADU to your house. According to Freddie Mac:

“Having an accessory dwelling unit on an existing property has become a popular way for homeowners to offer independent living space to family members.”

• Aging in Place: Similarly, ADUs allow older individuals to be near loved ones as they age. This option offers the best of both worlds – gaining support from loved ones while they maintain independence. Do you have parents, grandparents, or other loved ones who are getting older, and you want them nearby? An ADU might be the ideal fit.

• Affordable To Build: ADUs are often smaller, making them typically less expensive to build than larger, standalone homes. This opportunity has an additional benefit, as building one can also increase your property’s value.

• Generating Additional Income: Owning a home with an ADU or building an ADU on your land can generate rental income. You could put this extra income toward your own mortgage payments. One thing to note: If an ADU exists on a single-family lot as a secondary dwelling, it generally cannot be sold separately from the primary residence. This is changing in some states, so connect with our JSH real estate experts to know all your options. 

These are just a few of the many reasons why ADUs could be a good alternative for you. As Scott Wild, SVP of Consulting at John Burns Research, says:

“It’s gone from a small niche in the market to really a much more impactful part of new housing.”

Bottom Line

ADUs hold a variety of advantages for Kansas City buyers and homeowners alike. The Just Say Home Team can give you insight into local codes and regulations for this type of housing and even know of homes not publicly listed on the MLS!