Should You Build an ADU?

As housing needs evolve, more homeowners are exploring creative ways to maximize their property’s potential — and Accessory Dwelling Units (ADUs) are becoming an increasingly popular solution. In fact, 24% of homebuyers say they would value or need an ADU in their next home. But what exactly is an ADU, and is it right for you?

What Is an ADU?

According to Fannie Mae, an Accessory Dwelling Unit is a smaller, separate living space located on the same lot as the main home. These units may be attached or detached, but they must include a living area, bedroom, kitchen, and bathroom to meet the definition.

In essence, an ADU creates two independent living spaces on one property — making it a flexible option for families, renters, or guests.

Why Are ADUs So Valuable?

ADUs offer a range of practical benefits:

1. Multi-Generational Living

Families can stay close without sharing the same roof. Whether it’s aging parents, adult children, or other loved ones, an ADU offers the comfort of proximity with the privacy of separation.

2. Rental Income

An ADU can become a source of steady income, whether through long-term renters or short-term platforms like Airbnb. Many homeowners find that a rented ADU can offset mortgage costs or even pay for itself over time.

3. Childcare Solutions

Need help with the kids? Some homeowners build ADUs for nannies, au pairs, or caregivers. These spaces — often called nanny flats or au pair suites — provide convenience and privacy for everyone involved.

4. Aging in Place

Whether it’s for your own future or a family member's, an ADU supports the growing desire for aging in place — allowing people to remain close to their support system while maintaining independence.

What to Consider Before Building an ADU

While ADUs offer many benefits, there are a few important points to keep in mind:

• Ownership: Since both dwellings share the same lot, you cannot sell them separately. They must always be owned together.
• Zoning & Permits: You’ll need approval from your city and possibly your HOA. Even if your city allows ADUs (as many, like Durham, NC, do), HOA restrictions may limit what you can build.
• Costs: Building an ADU doesn’t have to break the bank. In some cases, you can create a fully functional unit for under $150,000–$200,000, complete with a kitchen, bathroom, and bedrooms.

How to Get Started

There are two primary paths to building an ADU:

1. Convert an Existing Space

If you have a basement, garage, or split-level home, you might already have the bones for an ADU. With the addition of a door, kitchen, bathroom, or bedroom, you can transform underused space into a separate living unit.

2. Build a New Structure

For more space or flexibility, you can build a standalone unit, such as a small house or cottage. While tiny homes can work well for short-term rentals, you might want something more comfortable for long-term use.

Need Help Getting Started?

There are many builders who specialize in ADUs — and if you're in the Triangle area, Spotlight Realty can connect you with trusted professionals. Whether you're looking to support your family, generate income, or plan for the future, an ADU could be the right step.

Have questions? Ready to explore your options?

Contact Bill Stevenson or any Spotlight Realty agent to learn more.

Spotlight Realty — Guiding You Home, and Beyond.
#ADU #RealEstateTips #RentalIncome #HomeImprovement #TriangleNCRealEstate #SpotlightRealty