What Are The Benefits Of Including An Auxiliary Dwelling Unit (ADU) When Purchasing A New Home?

An Auxiliary Dwelling Unit (ADU) is a self-contained, secondary dwelling unit located on the same lot as a primary dwelling unit. Also known as granny flats, backyard cottages, or guest houses, ADUs have become increasingly popular in recent years, particularly in areas where housing affordability is a concern. In this article, we will explore the many benefits of having an ADU when purchasing a new home.

1. Reduced Housing Costs

One of the most obvious benefits of having an ADU is that it can help reduce your overall housing costs, making homeownership more affordable. By earning rental income, you may be able to offset some or all of your mortgage payment, property taxes, and other expenses. This can make homeownership more accessible to those who might not otherwise be able to afford it.

2. Additional Living Space

Having an ADU provides additional living space. ADUs are typically smaller than primary dwelling units but can be used for a variety of purposes, such as housing family members, guests, or renters. An ADU can be used as a guest house for visiting family and friends, providing them with their own private space while they are in town. It can also be used as a home office, a studio space, or a gym.

3. Increased Property Value

Another benefit of having an ADU is that it can increase the value of the property. By adding an additional dwelling unit to the property, you are essentially adding an additional source of income. This can make your property more attractive to potential buyers, particularly those who are looking for a home with rental income potential.

4. Rental Income

If you decide to rent out your ADU, you can earn additional income to help pay for your mortgage, property taxes, and other expenses. Renting out an ADU can be an excellent way to offset the cost of homeownership and make your investment work for you. The amount of rental income you can earn will depend on a variety of factors, including the location of your property, the size of your ADU, and the local rental market.

5. Flexibility

An ADU provides flexibility for changing circumstances. For example, if you have aging parents who may need care in the future, an ADU can provide them with their own private living space while still allowing you to be nearby. Similarly, if you have adult children who may need a place to live for a period of time, an ADU can provide them with a comfortable and private living space while they get on their feet. Additionally, if you work from home or have a hobby that requires extra space, an ADU can provide you with the flexibility to create a dedicated workspace or studio.

6. Multigenerational Living

An ADU can be an excellent option for families who want to live together but also value privacy and independence. Multigenerational living has become increasingly popular in recent years, particularly in areas where housing costs are high. An ADU can provide an additional living space for aging parents, adult children, or other family members who want to live close by but still maintain their independence.

7. Sustainable Living

An ADU can contribute to a more sustainable living arrangement by making efficient use of land and resources. By adding an ADU to your property, you can help reduce urban sprawl, minimize the need for new infrastructure, and promote walkable neighborhoods. This can lead to reduced energy consumption and a smaller carbon footprint.

8. Privacy

ADUs can offer increased privacy for both homeowners and occupants. While living on the same property, each household can maintain a sense of independence and separation from one another. This can be particularly beneficial in situations where family members or tenants desire their own space.

9. Community

Including an ADU in your property can contribute to a stronger sense of community. ADUs can help create more diverse and inclusive neighborhoods by offering more affordable housing options. They also enable people to live close to their families, friends, or support networks, fostering social connections and community cohesion.

10. Aging in Place

An ADU can facilitate aging in place by providing a suitable living arrangement for seniors who want to remain in their community. By offering a smaller, more manageable living space, an ADU can help older adults maintain their independence while staying close to their support networks.


In conclusion, there are many benefits to having an Auxiliary Dwelling Unit (ADU) when purchasing a new home. From providing additional living space to increasing property value, rental income, flexibility, multigenerational living, reduced housing costs, sustainable living, privacy, community, and aging in place, an ADU can be an attractive option for many homebuyers.

Also, be sure to check out our Nibley Farms and Northstar Ranch Communities, which feature ADU options.