Accessory dwelling units, (ADUs), also known as Casitas, granny flats, in-law suites, or garage apartments, have been on the rise since the pandemic.
ADUs are growing at a rate of 9% or 100,000 per year, according to a new analysis by Porch.com, a home improvement site.
Properties that have one are sought after. In the largest cities, a home with an ADU is priced 35% higher, on average, than a home without one, according to Porch.com.
In the metro Phoenix area, according to a study by Porch.com, the average price of a home with an ADU is valued 142% more than a home without an ADU. The average home price in Phoenix is $360,100. However those with with an ADU, the average sales price is $895,000!
ADUs have been touted as one answer to the housing affordability and inventory crisis. Homeowners with ADUs can earn extra income by turning them into rentals or as places to house their aging family members nearby.
ADUs are not cheap to build, however. The average cost of an ADU is $180,000, typically about $260 per square foot. That number could stretch much higher depending on where you live. For example, an ADU could cost anywhere between $149,000 and $400,000 in the San Francisco Bay Area, and in Austin, Texas, an ADU can cost $300,000, the study shows.
There are about 1.4 million homes with an ADU in the U.S. as of 2019. The states with the highest concentration of sales listings with ADUs are California, Florida, Texas, and Georgia.
Is an ADU right for you and your house? Lets connect and I can run some numbers ! There are great loan options available if you want to build on to your existing home. If you want to look for options with a casita when buying a home, i will find all that are available!
