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Bob The Builder: Blog 7

Happy Weekend!!

The brisk air has arrived and so have many requests to build In-Law Apartments, also known as an ADU (Accessory Dwelling Unit). This uptick of ADUs in the renovation market does not surprise me. The United States is currently over 5,000,000 housing units short of what is needed. This is one of the reasons that home prices have risen and won’t fall as sharply as in the past. The law of supply and demand rules. Many States are recognizing that there needs to be more housing and one of the ways to address this is to build an ADU.

In today's ever-rising housing market, finding ways to maximize the utility of your property can be an excellent investment strategy. Making ADUs an increasingly popular option is to build. These versatile structures offer homeowners a wide range of benefits, from increased rental income to greater property value. Let’s explore why building an ADU or in-law apartment is a smart investment choice.

Flexible Use

ADUs are incredibly versatile structures. They can serve various purposes, from housing guests to providing a dedicated home office or a private space for hobbies. The flexibility of these units makes them an attractive asset, offering potential tenants or future buyers a range of uses that can adapt to their changing needs.

Multigenerational Living

ADUs are ideal for multigenerational living arrangements. Whether you want to accommodate aging parents, adult children, or other family members, an ADU provides a private, comfortable space for them to live while maintaining a sense of autonomy and independence. This can be a significant advantage for families seeking to support their loved ones while preserving personal space and privacy. They have also been a cost-effective solution over Assisted Living Facilities, or Independent Living Programs. Building an ADU provides a legacy apartment that can be used for future generations.

Rental Income

Another compelling reason to build an ADU is the potential for rental income. Many localities do not require the occupant of the ADU to be a family member. This is an opportunity for rental income! Each State, Town and City has its own zoning regulations as to size and connections to the existing building and utilities. If an ADU is an option for you, creating a separate living space on your property can generate additional income that can help offset your mortgage, property taxes, and maintenance costs. This extra income can significantly improve your financial stability and enhance your overall investment portfolio. An ADU is a long-term investment. As housing markets fluctuate, these structures continue to provide consistent rental income and property value appreciation over time. This stability can offer peace of mind for homeowners looking to secure their financial future and create a reliable source of income for retirement.

If you are thinking of building an ADU, there is a lot of research out there supporting why building an ADU is a wise investment decision that offers numerous benefits. From the potential for rental income to increased property value, tax benefits, and flexible use, these structures offer a secure and adaptable investment opportunity. Moreover, they provide an excellent solution for multigenerational living and contribute to addressing the affordable housing crisis in many communities. As homeowners seek ways to make the most of their properties, building an ADU stands out as a financially savvy and socially responsible choice. I can see why many homeowners are moving toward building ADUs!

Calyx can help you with designing and budgeting your ADU. Email us at to setup a complementary consultation.

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