Pros and Cons of building an ADU in your backyard
The housing crisis is a complicated issue that has an impact on numerous communities all around the world. In many areas, there is a shortage of affordable housing and a housing shortage has resulted in increasing rents. Using accessory dwelling units (ADUs) is one option for solving this issue. ADUs are secondary housing units that can be constructed on the same property as a primary residence to add extra living space. This blog article will discuss the possibilities of ADUs and how Stateful may assist you in investigating ADUs on your current property.
The laws across the US are changing now to make building ADUs easier for homeowners. ( Ref 1,
Ref 2 )
This also means that there is an opportunity for homeowners to make money from their backyards. Selling your backyard can be a great way to make some extra money. You can get in touch with us to know how to make money from your backyard
This also means that there is an opportunity for homeowners to make money from their backyards. Selling your backyard can be a great way to make some extra money. You can get in touch with us to know how to make money from your backyard
What are the various factors that a homeowner needs to consider before deciding on whether to build an ADU on their property?
There are three very prominent pros of building ADUs on the property, let us explore these in detail-
- Financial benefits
- Family unit/social benefits
- Neighborhood benefits.
What then makes it not so ideal to have an ADU in your backyard?
- Doesn’t meet your personal needs : For a lot of families, the backyard serves an important purpose for them and their family already. It may already be in use as a play zone, for gardening or having a vegetable gardener, workshop area, etc. In such a scenario, the current purpose for which the backyard is being used holds more value and hence the owner may not be willing to let go of it to build an ADU.
- Upfront capital costs : You’ll need about $100k in cash upfront to get the process started, and then another $100k to complete. This is obviously a lot of cash for most homeowners, which is why building an ADU is the most popular with homeowners who have a lot of savings. Stateful helps homeowners who don’t have extra cash lying around to build an ADU to be able to build the ADU without having to have the extra upfront capital fund for it. (Ref 5 , Ref 6 , Ref 7 , Ref 8)
- Permitting/vendors/management hassle : There are dozens of time-consuming and complicated steps which need to be complete in order to build an ADU- right from ordering the right surveys to completing architectural and structural engineering plans. Permitting alone can be a very complicated process that takes months for first-timers. At Stateful, our capabilities lie in permitting, architecture, local vendor networks, and engineering and construction partners. We can help you do everything right from getting the surveys done to the plans.
Conclusion:
The above should be able to give homeowners an idea of what factors to consider before deciding to build an ADU. If you are interested in learning more about how to maximize the value of your backyard through building an ADU, contact Stateful for a free, in-depth consultation