Are you struggling to find a home within your budget? Or maybe you already own a home but want to generate extra income or create a private living space for aging parents or guests. In today’s competitive real estate market, an Accessory Dwelling Unit (ADU) might be the perfect solution.

What Is an ADU?

An Accessory Dwelling Unit (ADU) is a self-contained living space on the same lot as a single-family home. According to Fannie Mae, an ADU must include its own designated space for living, sleeping, cooking, and a bathroom—independent of the main house. ADUs come in different forms, including:

  • Attached ADUs – Built as an extension of the main home, such as an apartment over a garage.

  • Detached ADUs – A separate unit on the property, like a guesthouse or tiny home.

  • Interior ADUs – A converted space within the main home, such as a basement apartment.

Why Are ADUs Gaining Popularity?

The demand for ADUs is rising, with a recent survey revealing that 24% of homebuyers consider an ADU one of the most desirable features in a home. Here’s why:

1. Extra Income Potential

Renting out an ADU can provide additional income, helping homeowners offset mortgage payments, property taxes, or maintenance costs. With the rise of Airbnb and short-term rentals, ADUs offer a flexible investment opportunity.

2. Multigenerational Living Made Easy

Many families today are looking for ways to accommodate aging parents while maintaining independence. An ADU allows loved ones to stay close without sacrificing privacy, making it an ideal solution for multigenerational living.

3. Built-In Childcare & Family Support

Having grandparents or extended family members living in an ADU can be a game-changer for working parents. With built-in childcare, families save on daycare costs while strengthening family bonds.

4. Increased Home Value

ADUs are an attractive selling feature, boosting property value and making homes more appealing to future buyers. Freddie Mac and AARP report that homes with ADUs often sell for higher prices due to their versatility and rental income potential.

What to Consider Before Adding an ADU

Before investing in an ADU, homeowners should check local zoning laws and building codes. Regulations vary by location, and while some areas allow ADUs as separate rental units, others may have restrictions on occupancy or resale.

Bottom Line

An ADU can be a smart investment—whether you're looking for extra income, a private space for family, or a way to boost your property value. If you’re interested in buying a home with an ADU or adding one to your existing property, our team at Don Reid Properties can guide you through the process.

📩 Contact us today for expert advice on ADUs, home values, and the Richmond real estate market!