Why Are Property Owners Investing in ADUs?    

Accessory Dwelling Units are a popular way to invest in your existing property. Learn how an ADU can support family members, increase your property’s value, and provide additional income.

Benefits of Accessory Dwelling Units

Increased Property Value

While a substantial investment, an ADU does add value to your property. Potential buyers will see your ADU as an asset; they may want to use it as a secondary dwelling unit, a home office, or a guest house for visitors and family.

Affordable Housing

Finding affordable housing is the single greatest challenge facing most workers or retired Californians. Because they are smaller and share property with another residence, ADUs can be more affordable to build.

Land Conservation

Adding an ADU to your existing property places another housing unit on the market – without the need for additional land. Plus, the smaller sizes of ADUs are a more sustainable housing option for some people than larger single-family residences.


Detached ADUs provide additional independence for the residents than attached ADUs. Renters or service providers can feel like they have their own place, with privacy from the other residence. For elderly family members, an ADU allows you to give them a greater amount of independence than they would have in a retirement community/assisted living community/nursing home.

Potential Uses for Accessory Dwelling Units

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Support Family Members

To meet today’s alternative family arrangements, you need to use alternative housing options. ADUs make great in-law quarters and provide families with a place to care for their aging parents. ADUs are also a popular way to give adult children a place to live while respecting their privacy.

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House On-Site Caregivers

If your family relies on an on-site caregiver – like a live-in nurse or nanny – an ADU will give them the privacy and independence they need, while also giving you the on-site convenience you are looking for.

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Additional Rental Income

Accessory Dwelling Units are the perfect fit for short- and long-term rentals. If you live in a popular community, you can Airbnb your ADU and get additional rental income. Or, you may choose to live in your ADU and rent out your main residence to short- or long-term tenants.

ADUs: More Than a Finished Shed

Finished sheds are popular, affordable options for home offices, art studios, poolhouses, or other backyard uses. Yet they don’t have all the tax, financial, and practical benefits that an ADU has.

Accessory Dwelling Units are permanent structures built on your property, complete with power, water, and sewer connections. ADUs have received significant legislative backing statewide and in many communities. Plus, ADUs are constructed like a normal house, so it will last for generations.

See how ADUs compare with finished sheds & accessory structures.

Compare ADUs with Finished Sheds

Have ADU Questions? Get Answers from the Experts

We’ve compiled our years of experience building prefab structures into The Ultimate Guide to ADUs in California. In this guide, you’ll learn everything you need to know about the ADU process – from planning & permitting to designing & construction.

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