According to a new research study by Freddie Mac, as the nation’s affordable housing crisis intensifies, there is a growing movement in high-cost areas for the legalization and expansion of accessory dwelling units (ADUs)—also referred to as granny flats, garage apartments and in-law suites.
The growth of ADUs in the U.S. has been substantial—especially in high-cost areas with significant population growth. “The nation’s affordable housing crisis has intensified in this turbulent economic environment, and ADUs are increasingly providing a viable affordable housing option for people of all ages,” said Sam Khater, Freddie Mac’s chief economist. “Portland, Dallas, Seattle, Los Angeles and Miami metro areas have led the remarkable growth in ADUs.”
The study concluded that, “While accessory dwellings have existed in high-cost areas of the country long before cities began to relax zoning laws, research shows first-time ADU listings increased more rapidly from 2009 to 2019, growing at an average annual rate of 8.6%. Over this 10-year period, ADU listings as a percentage of total active listings rose from 3.5% to 6.6%. In 2019, 78,000 accessory units were either sold or rented, up from 36,000 units in 2009. ADUs help fill the gaps in long-term affordable rentals.”
Photo: iStock.com/Svetlana Mokrova
