Why Californians Are Investing in Accessory Dwelling Units

Real Estate agents in Los Angeles have seen a significant increase in the number of clients interested in adding ADUs to their properties. They can provide a source of additional income, help offset mortgage payments, and even increase the value of your home. However, there are also some potential downsides to consider before taking the plunge. In this blog post, we’ll explore the pros of accessory dwelling units so you can decide if they’re right for you.

The Pros of Accessory Dwelling Units

There are many reasons why Californians are choosing to add accessory dwelling units to their homes. Here are just a few of the potential benefits:

Additional Income Source

Perhaps the most obvious benefit of adding an ADU is that it can provide a source of additional income. If you choose to rent out your unit, you can generate monthly income that can help offset your mortgage payments or other living expenses. And unlike traditional investments like stocks or bonds, there’s no risk of losing money on your investment if the housing market crashes.

Increased Home Value

Another benefit of adding an ADU is that it can increase your home’s value. A well-designed and well-built unit can make your home more attractive to potential buyers, which could lead to a higher sale price down the road. And even if you don’t plan on selling anytime soon, having an ADU can still increase your property’s value for future generations.

More Living Space

An ADU can also provide much-needed extra living space for your family. If you have adult children who have moved back home or aging parents who need assistance, an ADU can give them the privacy and independence they desire while still being close by if they need help. Additionally, if you work from home, an ADU can provide a quiet and private space to get away from the hustle and bustle of daily life and focus on your work.

ADUs Provide Extra Space and Flexibility

As the cost of living in California continues to rise, many homeowners are finding it necessary to not only downsize their homes but also invest in additional living space that can be rented out to help offset mortgage payments or other expenses. For some, this extra space takes the form of an in-law unit added on to their home; for others, it may be a standalone unit built in their backyard. Either way, these units provide much-needed extra space without the hassle (and expense) of having to move to a larger home.

ADUs Can Generate Additional Income

In addition to providing extra space for families, many Californians are also using their ADUs as rental units that generate additional income. With the state’s high cost of living, any extra money coming in is helpful, and being able to rent out your ADU provides a unique opportunity to supplement your income without having to deal with the headaches of being a full-time landlord. 

ADUs Offer More Housing Options for Seniors and Boomers

As more and more baby boomers reach retirement age, there is an increasing demand for housing options that allow seniors to age in place while still having access to assistance when needed. For many seniors, an ADU attached to their home provides the perfect solution – they can maintain their independence while still having someone close by if they need help. Additionally, many seniors use their ADUs as guesthouses when their grown children or grandchildren visit. 

Final Thoughts

Whether you’re looking for extra income, increased home value, or more living space, accessory dwelling units offer a lot of potential benefits. However, there are also some considerations to keep in mind before taking the plunge. ADU Expert Pedram Zohrevand says that it is important to be aware of the added costs and challenges of adding an ADU, like local ordinances may place restrictions on what you can do with your unit. Nevertheless, for many Californians, the pros outweigh the cons regarding accessory dwelling units. If you’re considering adding an ADU to your property, do your research and consult a qualified professional to ensure that it’s the right decision for you.

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