ADUs and Granny Flats Are Gaining Popularity; Here’s Why You Might Consider One, Too

ADUs and Granny Flats Are Gaining Popularity; Here’s Why You Might Consider One, Too

Accessory dwelling units (ADUs) — also called granny flats or in-law suites — are on the rise. According to Freddie Mac, the share of for-sale listings with ADUs went from just 1.6% in 2000 to nearly 7% in 2019. In total, about 1.4 million U.S. homes now have these spaces.

Though that’s still a relatively small number, these home additions are clearly on the rise — and there’s a good chance coronavirus has something to do with it. 

As the pandemic rages on, many homeowners are looking for ways to bring their aging parents, adult children, and other family members into their homes while still maintaining some sense of privacy. ADUs also help families with social distancing efforts.

Of course, these aren’t the only reasons homeowners add ADUs to their properties. Are you thinking of building one on your property?

Here are a few benefits you might enjoy with an ADU:

  1. More space – Who couldn’t use more space? Whether you need a home office for all that remote work you’re doing or you just want somewhere for your grandkids to stay when they visit, an ADU can be the perfect way to get it.
  2. More marketability – It’s clear that more Americans want ADUs, so adding one? It very well might mean an easier sale when it comes time to list your property.
  3. Higher sales price and profits – Likewise, you may be able to command a higher price once you’re ready to sell. ADUs are essentially an added room, so that’s more square footage and, more than likely, more money.
  4. Extra income – If you’re in need of a little extra cash, ADUs can help there, too. Rent yours out on Airbnb to short-term renters, or market it to long-term tenants and bring in added income every month.
  5. More flexibility during COVID – Finally, an ADU can just be helpful during COVID. Did a family member test positive? Relegate them to the ADU until their symptoms subside. Want to make sure your doctor spouse keeps away from the kids after exposure at work? With an ADU, you have options.

The bottom line? ADUs are on the up-and-up — and if you’re a homeowner, you can take advantage of the trend, too. Want to build an ADU or granny flat on your property?

Get in touch with an Embrace Home Loans team member today.

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Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.