Senior Spotlight: The ADU Option To Aging In Place

Granny Unit. Tiny Home. ADU (Accessory Dwelling Unit). In-Law Quarters. Guest House. There are many names for it, but ADUs offer multiple solutions for many housing challenges – including aging in place and/or adding income to one’s retirement lifestyle. 

While ‘granny units’ have existed for decades, a California zoning law change in 2017 made the process to add one much easier. Once the statewide mandate changed, ADU construction surged from 1,100 units in 2016 (prior to the new ordinance) to 23,600 units in 2021. In the five-year time frame following the 2017 permit change, nearly 68,000 ADUs were built across the state. Many homeowners are utilizing them as additional income, to house adult children, to care for loved ones or to move in themselves as they age. With the housing shortage continuing, ADUs are a desirable and oft-affordable way for renters to find housing. 

What does all of this mean for seniors… and for aging in place though? An ADU can offer several solutions to one’s retirement plan, here are just a few of them:

#1: Additional Income: While there is always a cost to an investment, an ADU can be a much more affordable addition than buying a separate property. Adding an ADU can serve as an on-site rental unit now and evolve to meet other purposes (listed below!) in the years to come. Passive income now, usable caregiver housing later. 

#2: Housing A Caregiver: If you want to age in place but don’t want to live entirely alone, adding an ADU can be an option to house a live-in (or live onsite!) caregiver.

#3: A Multi-Generational Solution: Adding an ADU can be used to house an adult grandchild, especially a recent college graduate or relative starting fresh. In addition, some older adults choose to move-in to the ADU on their property – and rent the main home to a loved one or adult child and their family. It’s a way to downsize without leaving the property and community you love. 

#4: Building Future ROI: If you plan to sell down the road but not today… adding an ADU can add to the future ROI of your home. While there is no data yet on IF there is a dollar-for-dollar ROI on this improvement (there rarely are on any renovation by the way!), having a built-in investment property could be a great selling point. If you can use the space to creative passive income now AND achieve max ROI later… it’s a win-win. 

#5: Aim For Accessibility: If you choose to build an ADU and plan to age in it yourself or house an aging loved one, make sure it is actually accessible. How many steps lead up to the front door? Is a loft really livable? Are the doorways and rooms wheelchair accessible? A 2017 Census Bureau report reveals that 1 in 3 seniors has trouble using some feature of their home. Note this when building and planning! 

Are ADUs really the future of senior housing? As we always say, there is no one right way to age – but a variety of creative solutions to choose and create from. ADUs are one such option – and a desirable one at that. An AARP study conducted in the last 5 years found that 67% of adults “would consider living in an ADU to be close to someone but still have a separate space” and 1/3 of respondents would consider building an ADU. 

An open mind can open many options… cheers to the possibilities! 

Resources Used: ADUs Surge in California, Gain Momentum Nationwide ; The Tiny Addition That’s Helping This Homeowner Retire the Way We All Dream of One Day ; Accessory Dwelling Units Allow Homeowners to Choose Where They Age ; Aging-Accessible Homes ; Is Your New Granny Flat Truly Grandmother-Friendly?

Bobbi 

Bobbi Decker
DRE#00607999

Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com

NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/