Attached or Detached? How to Determine What Type of ADU is Right for You

Homeownership has traditionally been a major part of the American Dream. It's an opportunity to create wealth, and now, with the rise in popularity of Accessory Dwelling Units (ADUs), that wealth could be right in your backyard. As homeowners, we rarely view our properties through the lens of untapped potential. Yet, in a world desiring more optimized space and promoting sustainable living, ADUs stand as a creative solution. But how do you know if adding an ADU is right for your property? What are the various building strategies, and what does the future of ADUs look like?

This post will take you on a deep dive into the world of ADUs, helping you discern if your property holds the potential for one and identifying building strategies that could turn your vision into a reality. With a firm grasp on this knowledge, you'll have the tools to capitalize on the wealth in your backyard.

Deciphering the ADU Landscape

ADUs come in two common forms: attached or detached, each with its own set of considerations.

Attached ADUs are typically built as an addition or carve-out of a primary residence. They share one or more walls but maintain separate entrances. ADU Conversions are structures that exist on a property, such as a garage or basement but are repurposed into living spaces. Because conversions may reduce the usable area of the primary home, conversions or attached ADUs may negatively impact the primary home's value.

Detached ADUs, as the name suggests, are independent structures built on the property. They neither share walls nor reduce the usable existing space of the home. These can range from smaller units to larger homes and are typically 300 to 1,200 square feet. When designed properly, they can increase the living space and value of the property without diminishing privacy or quality of life.

Which one is right for you? The answer largely hinges on your property's characteristics – its size, layout, zoning, and your budget. Do you want to generate rental income, create additional space for family, and/or increase your property's resale value? Once you've clearly defined your purpose, assessing which ADU type fits your property becomes a matter of fit and feasibility.

Navigating Building Strategies

When it comes to construction, you have many options: traditional construction, modular housing, manufactured housing, and panelized systems. Each has its own merits and challenges. Traditional construction, often called “stick-built”, offers greater customization but can be more time-consuming. Modular units, built off-site to strict state and local building codes, alleviate on-site complexity by shifting focus to mainly delivery and installation considerations for a unique property. Panelized systems, where walls and other components are built off-site and assembled on-site, offer moderate customization and time savings but may be unfamiliar to your general contractor and present other risks if they haven’t worked with this method before.

Choosing the right building strategy often depends on your unique circumstances. Budget, timeline, and desired customizations will significantly determine the best fit for your project.

Assessing ADU Feasibility: A Step-by-Step Guide

Check Local Regulations: Before drafting your plans, check your city or county zoning laws. These govern what you can and cannot build, including ADU sizes, parking requirements, and design standards.

Survey Your Property: Understanding your property and its unique characteristics is critical. How much open space is there? Is there an existing structure that could be converted? What's the topography like? Is there easy access to electric, water, and sewer utility lines? These factors will influence the type of ADU you can build.

Set Your Goals: Clearly define your objectives. Is it income generation, providing housing for a relative, or increasing property value? Your goals will inform the ADU design and its features.

Estimated Costs and Financing: Constructing an ADU can vary widely. Researching costs and financing options early on will help you budget effectively and ensure your project's financial feasibility. A contingency is recommended to be added to your budget for unforeseen costs or price escalations.

Consult Professionals: Architects, contractors, and builders can offer invaluable advice on design, construction techniques, and cost-saving strategies. Their expertise could make or break your project.

ADU Trends on the Horizon

Urbanization, housing affordability issues, and a growing desire for multi-generational living all contribute to the steady rise in the popularity of ADUs. It’s estimated to be a $30 billion market by 2030. There has also been a significant increase in ADUs for rent and properties for sale with an ADU.

Trends to watch include sustainable design principles, smart home technology, and increased flexibility in zoning laws. States nationwide are considering statewide by-right policies like those enacted in California.

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