Should You Build Your Own ADU?
As ADUs grow in popularity, more people are starting to wonder about the benefits of constructing one on their property. With different rules and regulations for different states, it can be hard to determine if an ADU is right for you. So, should you build your own ADU?
Benefits of ADUs
There are a number of benefits of building an ADU on your property.
Multi-Generational Housing
If your parents are aging and you want to be able to keep a close eye on them without infringing on either of your privacy, an ADU can be the solution. ADUs will offer extra housing on the same lot for you to care for your aging parents without having to move them into your home. ADUs can also be great for kids emerging into adulthood who are not quite ready to take on the world but would like some added independence in life.
Rental Income Opportunity
Renting out your ADU can offer passive income to your family. If you are struggling or would just like a little extra spending cash, this can be a great opportunity to increase your wealth. Plus, by renting out your ADU, you are helping to combat the rising housing crisis by offering affordable housing to low-income families.
Disadvantages of ADUs
Along with the benefits, there are always drawbacks to everything, including building ADUs.
Expensive Building Costs
ADU development costs are around $113,300 – $138,250. That is a lot of money for a lot of people. However, there are plenty of ADU financing options that can help with this initial cost of development. Plus, if you rent out the ADU, it will pay for itself over time.
Tough Regulations
Another drawback is that many cities and states have tough restrictions and regulations when it comes to building an ADU that can prevent many people from doing so. However, in some states like California, lawmakers are easing restrictions to make the process easier in order to combat the rising homeless population.
The Decision Is Yours
If you can come up with the money and live in a state that has rather relaxed regulations in comparison to others, then the benefits outweigh the disadvantages. However, if you struggle to find funding or the process will be more of a headache than it is worth, then you may not want to build one.
