Not going to lie…it’s expensive to build right now. My design costs are stable because my work is not affected by labor shortages or supply chain issues.
So if construction costs are high, why would someone choose to build right now?
Well, first I don’t think cost are going down anytime soon. I did in 2021. After 2 years it’s clear there is no going back and instead, we have a new normal to navigate.
Secondly, investing in your home and your future living situation is one of the most valuable investments you can make. It’s not the stock market or some house you flip that may or may not make a profit. It’s land which I’ve always been told they are not making any more of. If you are working or schooling from home, or retired, you should love where you spend most of your time.
Remodeling for an ADU, or building a DADU, adds value to your property AND creates flexibility for your living situation. You can live in the ADU or rent it out long term or short term. Your larger home will most likely bring in more money so choosing to live in the ADU might make more sense for you. Either way you have a choice.
You also create a place for family to live nearby without occupying your space. Whether it’s a parent, sibling, grown child or caregiver. Everyone has different reasons for building.
All these options can include aging (or living!) in place for you or a close one (doesn’t have to be family). Most people want to stay in their home & neighborhood, and near the people they know as they age. This gives them or you that option and because housing is so expensive it’s mutually beneficial for both parties.
If you rent your house for income, live in the smaller ADU (but brand new and customized for you) you are paying less money, now it’s starting to make financial sense to take the plunge of building this separate space. Instead of complaining about the cost of your home you can start planning what you are going to do with the money your home is making for you.
Financing an ADU? That front has gotten better too! The Federal Housing Administration announced a change to their 203k construction loans. It allows projected future income from an ADU to help applicants meet the income requirements for obtaining the loan.
It’s scary taking the plunge. It’s a lot to take on. It’s expensive! So, take your time, pick your team of people you trust and start financially planning how you can make this work. There’s no rush as you already own the property, so time is on your side.
You can dip your toe in the water by booking a consultation to learn specifics about your property. The information you learn will arm you with knowledge you need when speaking to family, the bank, or others about your plan because they may not be as savvy about ADUs as you are!