7 Reasons Why Adding an ADU to Your Home Makes Financial Sense 

 August 16, 2022

An accessory dwelling unit (ADU) is an additional living space that’s built onto your house and on the same property as your primary residence but in a separate building. ADUs or prefab adus are more popularly known as granny flats, mother-in-law suites, or in-law apartments.

They have several different names because they’re available in several different configurations depending on your lifestyle and needs. If you have grown children, elderly parents, or friends who need extra care, consider adding an ADU to your home. Here are 7 reasons why ADUs or office pod makes financial sense to do so.

Multi-generational Living

More and more families are opting for multi-generational living and for good reason. Not only does it provide a sense of community and support, but it can also be financially beneficial. Here are seven reasons why adding an ADU to your home makes financial sense

1) It’s easier on the environment: Reducing your carbon footprint is easier than ever with the addition of renewable energy sources like solar panels and wind turbines.

2) It can lower your monthly housing costs: With new methods of heating and cooling our homes, less electricity is needed to heat or cool the house; reducing that cost tremendously.

3) An increased income source: Who doesn’t want an extra source of income?

Lower Costs Can Equal Big Savings

With the costs of living on the rise, many people are looking for ways to save money. One way to do this is by adding an ADU, or accessory dwelling unit, to your home. Here are seven reasons why adding an ADU can help you save money

Convertible Space

An ADU can be created out of existing space in your homes that is not being used, such as a basement, attic, or even a garage. This makes adding an ADU more affordable than building an entirely new structure.

Accessibility for Everyone

  1. Adding an ADU can make your home more accessible for everyone, whether they have a disability or not.
  2. It can also help you age in place and avoid the cost of long-term care facilities.
  3. An ADU can provide income potential through rental income, which can help offset the costs of mortgage payments, property taxes, and other homeownership expenses.
  4. Additionally, an ADU can serve as a source of supplemental income in retirement.
  5. By adding an ADU to your home, you may be able to increase its resale value.
  6. And finally, building an ADU can be a fun and rewarding DIY project!

Sell it Later, Rent it Now

When you add an ADU to your home, you’re not just increasing your property value—you’re also creating a new source of income. You can rent out your ADU to generate extra income, and when you eventually sell your home, the ADU will be a major selling point.

Income Stream While House Is Not Being Used

If you’re like most people, your home is your biggest asset. And if you’re not using it all the time, why not rent it out and generate some income? That’s where adding an accessory dwelling unit (ADU) comes in.

The building process for an ADU takes about six months to complete and doesn’t require any major construction on a property. When the process is done, homeowners will have a small living space with their kitchenette, bathroom, bedroom, and den space that can be rented out for about $1,000 per month or $12,000 per year

They Are Tax Deductions

The cost of adding an ADU can be deducted from your taxes as a home improvement. This deduction is available whether you rent out the unit or use it for personal purposes. It is important to note that the IRS does not allow deductions for illegal structures, such as detached garages, pools, and saunas.

We’re In-Demand: A recent report found that 1 in 5 renters want to move into an ADU because they are a much more affordable option than owning a separate house.


If you’re looking to buy or build your dream home but think that the prices are too high, consider adding an accessory dwelling unit (ADU) to your existing home. ADUs are often also called granny flats or in-law suites and can provide an extra income stream and allow you to comfortably retire with all the amenities you want in place now.



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