In construction and real estate, an ADU, or “accessory dwelling unit,” is a secondary housing unit that exists on a property zoned for single-family or multifamily residential use. ADUs can be designed in various ways: detached from the main house, like a standalone home in the backyard; attached to the main house, such as through a garage conversion; or integrated within the main house, like an upstairs unit. Each ADU is equipped with a full kitchen, a bathroom, and a separate entrance, making it a fully functional living space.

Often referred to as “granny flats,” “in-law suites,” or “backyard cottages,” ADUs have become a smart solution to the housing shortages seen in many urban areas. These compact, efficient homes provide property owners with versatile options to maximize their existing space. Beyond serving as additional living quarters for family members or generating rental income, ADUs can meet a variety of other needs. They can provide a private, comfortable space for guests, function as a home office or studio for remote work or creative projects, or offer a dedicated area for hobbies and leisure activities that require more space than the main house can provide.

This flexibility not only enhances the value of the property but also helps address broader housing challenges by increasing the available housing options within the community.

An ADU offers versatile benefits, whether you're looking to keep elder parents close by while maintaining their independence, generate rental income, or create a private guest suite. This additional space provides a flexible, cost-effective solution that enhances your property’s value while meeting various needs. Below, we'll dive deeper into how an ADU can serve as a perfect option for family care, a lucrative rental property, or a comfortable guest retreat.