If the pandemic taught us one thing, it was creating a new way to work and live, causing more people to consider investing further into their home. 

Accessory dwelling units have been welcomed for providing affordable, flexible housing solutions while adding relief to inventory shortages. According to a popular home improvement website, approximately 100,000 ADUs are being built every year, stressing the demand for an ADU. Moreover, homes that come with an ADU are priced on average 35% higher than homes without one. 

This is a significant trend that is only expected to continue, and as such, construction companies need to adapt their offerings to meet the demand.

Why Buyers Are Choosing ADUs

• The current housing market is unaffordable for many young families. The cost of a typical home has increased significantly in recent times, making it difficult for many young families to enter the market. However, with an ADU, they can afford a larger home as the extra income from renting out the unit will cover the mortgage payments.

• An ADU can be converted into a home office, guest suite, or even a rental unit. This flexibility is appealing to many buyers who want to have begun working from home or who frequently have guests stay with them. Many have taken up hobbies and passion projects during lockdown that need to be accommodated.

• Multigenerational living is becoming more popular as families look for ways to support one another. According to the National Association of Realtors, 18% of buyers between the ages of 41-65, many of whom fall within the Generation X age segment, purchased a multigenerational home during the past year. An ADU can provide a place for an elderly parent to live while still being close to their family. With the elderly population set to increase in the coming years, this is likely to be a key driver of demand.

How Construction Companies Should Adapt

• Marketing efforts will need to be altered to target buyers interested in ADUs. This might include using different language in advertising and creating floor plans that showcase the flexibility of these homes.

• There is no one-size-fits-all when it comes to ADUs, so construction companies will need to offer a range of options to meet the needs of different buyers. This might include a variety of floor plans, finishes, and even the option to build an ADU as an addition to an existing home. Making use of planning software can go a long way in simplifying these efforts.

• A challenge that often presents itself with ADUs is municipal zoning regulations or HOA rules. However certain states like California and Oregon are starting to welcome this housing option. As more states begin to adopt this it will further pave the way for the ADU boom we’re seeing throughout the US.

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As people learn the various uses of an ADU and how it provides flexibility, the market will only continue to grow.

Canibuild offers software solutions that can revolutionize your sales and planning processes. Our Visual Sales Tool has changed the way you sell ADUs across the United States. If you are looking to keep up with market trends, request a demo today and find out how our products can change the way you do business.