ADUs are growing at a rate of 9% per year… what’s an ADU?

ADU-2021

Minneapolis first approved ADUs (Accessory Dwelling Units) in 2014, but they have been around informally for a long time. Commonly called an in-law apartment or granny flat, it is simply a second small dwelling on the same grounds or part of your single family house. It might be an apartment over the garage, a tiny house in the back yard, or a basement apartment. It is legally part of the same property as the main home and cannot be sold separately.

People build them for many reasons, most commonly for housing a family member or additional income from rent. During the pandemic they grew in popularity, both for multigenerational living and also as a separate getaway space or office when the whole family was living, working and playing at home.

Nationwide they have been growing at a rate of 9% or 100,000 per year, according to an analysis by Porch.com, a home improvement site. Also according to their analysis, a home with an ADU may be priced 35% higher than a home without one.

The Twin Cities Homes by Architects tour this fall featured two ADUs. Both were essentially converted garages. The one shown above became the Pilates studio of the owner on the ground level, with her living space above. She rented out the main house. Read more about this ADU designed to create a feeling of “not too little, not too much.”

ADU2-2021People often build ADUs with the intent of housing aging parents nearby, and the other ADU on the tour featured a 660 sq ft apartment over their garage that even included an elevator so access wouldn’t be a problem. Read more about it here.

Flexibility in housing makes sense for environmental, lifestyle, family and financial reasons. It can also have social benefits… you could have your best friend, your mother, or your grown kid live with you and still have some independence with informal support.

Each city sets its own requirements. If you are thinking about building an ADU, be sure to talk to your city first to find out current ordinances.

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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