Ditch the Single Family House: How ADUs Are the New American Dream

An ADU (Accessory Dwelling Unit), Granny Flats or In-Law Units are all the buzz in the real estate and construction world. Year over year, our business has shifted from single-family home additions and remodels into designing ADUs. And for good reasons.

The Old American Dream

For generations, including my own: a student immigrant to the United States, the American Dream was a linear path: get a good education, land a stable job, climb the corporate ladder, marry the love of your life, buy a house, have kids, and retire comfortably (to finally start living life and traveling the world).

Buying a house was particularly important because it meant stability, permanence and, frankly, a status symbol that “I MADE IT” in America. To this day, my parent’s generation are still talking about whose kids still haven’t bought a house or married or have a traditional (highly paid) corporate job.

And it sometimes get trickled down to our generation, as we compare ourselves to our peers and friends.

But for millennials, including myself, that dream is fading faster than ever. My husband I are bought our first ever, exclusively Single Family House in the desired hilly neighborhood of our dreams and walking distance to our local “downtown”. The house is bigger than our previous place, and all ours. It has a backyard and a front yard, a garage we hardly used, and too many rooms to occupy. And it came with a hefty price tag and the monthly payment was eating into our paychecks.

We’ve got the corporate life and we’ve got the house. But were shackled to both in order to afford paying those high mortgages and interest rates, ever increasing property taxes, insurance and utilities, and unexpected maintenance that comes with homes.

On top of that, rising cost of living, crippling student loans and credit card debts, and stagnant wages (not to mention job insecurity and the constant worry of economic recessions), makes the traditional American Dream feel less like a dream.

But fear not! There’s a new and exciting opportunity for achieving financial freedom, and it’s right in your backyard: the Accessory Dwelling Unit, or ADU. Other names for it are the Granny Flat or the In-Law Unit.

What is an ADU?

ADU, or Accessory Dwelling Unit, is an additional, and completely private and separate living space that can be added to your existing property. It can come in the form of a garage / rec room conversion, new construction, or splitting part of your house.

Imagine a cozy cottage, a stylish studio, or a mini-apartment tucked away on your property. That’s an ADU! It comes with its own front door, kitchen, bathroom, and sleeping area, perfect for creating an additional source of income by renting it out to tenants and generating passive income, housing aging parents, creating a dedicated home office or guest house and so much more.

This innovative concept allows you to maximize the potential of your property and unlock new financial opportunities, all while enjoying the comfort and convenience of having an ADU right in your own backyard. There’s no need to travel far for maintenance repair, no need to hire a property manager on another city to take care of any issues, and you’ll always keep an eye on it.

So, how can ADUs help you achieve financial freedom?

You already own your property and your house, why not add an ADU?

Think: help with your mortgage and bills, Airbnb goldmine, vacation fund, children’s education, your parent’s retirement home, retirement nest egg. Here’s how:

Say goodbye to mortgage (or at least half of it):

You can rent out your ADU, or move into your (brand new) ADU and rent out your main house completely or by the room. You’re not only helping yourself, but another family in need of a safe and clean home in a good neighborhood. Pride of ownership goes a long way in attracting good tenants who will also take care of your property.

Suddenly, that spacious house, unused garage or empty backyard becomes a cash-generating asset, freeing up funds for travel, hobbies, time with kids, or early retirement.

You can also create a community right in your own backyard. Other people, particularly young people who aren’t interested in long-term leases or living alone, are actively seeking intentional communities through co-living. These tenants want to have their own private apartments with shared outdoor spaces.

Build generation wealth right in your back yard. Multigenerational living is on the rise, and ADUs are the perfect way to welcome your parents or family members without sacrificing privacy or personal space. It’s convenient and it gives you peace of mind to be close by for support while maintaining healthy boundaries.

If your vibe is to build a community then an ADU is perfect for you. You can choose who your tenant is. For me, I felt safer knowing that there was another family, that I vetted and trust, living on my property in case of any emergencies or while I was working at home alone or had gone away on vacation.

Supercharge your earnings and turn it into an Airbnb:

Millennials are Airbnb’s biggest users. Why stay at an expensive hotel or rundown motel when you can stay at someone’s private home in a safe neighborhood and explore all the local gems. Guests also have the convenience of cooking in a kitchen and hanging out in a living room after a full day of exploring.

You can turn your ADU or home into a stylish haven and attract travelers into your neighborhood. You and your local businesses benefit from all the travelers you’re attracting. In some major cities you can easily make 1.5x more than your average rent, and in some cases even more. And if you’re into meeting new people and fellow travelers, then Airbnb is perfect for you.

Have flexiblity and earnings with Mid-Term Rentals:

If you aren’t into hosting people short term, then try mid-term rentals. You can rent out your home on Airbnb, or other platforms, for people and families who need weekly or monthly housing in what it’s called Mid-Term Rentals. You can help in these ways:

• House families gathering for major holidays or family reunions
• people who are going through home remodeling and are in need of a cozier and cheaper place to stay than a hotel
• traveling nurses who are on a short-term contract
• work-from home professionals who are exploring different cities while also being able to work from anywhere
• people who’re just exploring different cities to settle in

The wear and tear, management, and products that you will provide are less than with an Airbnb.

Keep in mind though, an Airbnb and all these other platforms, are a business, so it comes with its own set of expenses, local laws, regulations and restrictions. There will be more wear and tear and regular upkeep in these homes because of the amount of guests that will go through them. Before turning it into an Airbnb, ask your local jurisdiction for any guidance.

The possibilities are endless thanks to the financial breathing room that an ADU can provide: extra income, cut back hours at work to focus on your side hustle, vacation savings, etc.

ADUs: More than just building wealth, it’s a lifestyle shift

The American Dream doesn’t belong in the corporate ladder anymore, or the beautiful house with the white picket fence, it belongs to us and our choice is to seek freedom.

Freedom of location, time, and money.

It’s about building a life that nourishes your soul instead of just your bank account. It’s about designing a future where you’re not just working to live, but living to work on your passions, whatever they may be. Free to go anywhere and spend time with your loved ones.

So, are you ready ditch the financial trap that is a Single Family House and build wealth?

Start by researching ADU, granny flats or in-law units regulations in your area. Talk to local builders and designers. Get inspired by ADUs and tiny homes ideas on Pinterest and Instagram.

With a little planning and creativity, your ADU can be your ticket to financial freedom, a haven for loved ones, and a springboard to a life filled with purpose and joy.

I’d love to hear your thoughts! Please leave me a comment or write me an email, I read and respond to everything single comment and email. You can also contact me if you have an ADU project in mind.

And don’t forget to share your ADU journey with us!

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