Communities experiment with new ADU models

ADUs, or accessory dwelling units, are small housing units built on the lots of single-family homes used as rentals, studios, in-law units among other uses. They have become a popular way for towns and cities to increase their housing density and provide homeowners with valuable space for additional income and hosting options. The percentage of homes with ADUs is growing and some communities are looking to develop policies that give them even more flexibility for local housing, such as allowing them to be sold separately from the primary single-family home on the property. As inventory remains low and home prices creep higher, ADUs provide a compelling opportunity for communities to increase their housing stock without sprawling. Innovative policies around ADUs look likely to continue in areas throughout the country. Brokerages and agents are smart to investigate and know the local regulations around them, where they can be rented on a short-term basis, where they are prohibited and under what conditions they are allowed.