What Are the Benefits of an ADU for Multigenerational Homes?

by John Carlucci - August 4, 2022

If there’s anything we’ve learned throughout the Corona Virus pandemic, families refuse to leave their elderly loved ones in a retirement home. If possible, families would take their loved ones out of the retirement home and bring them home so they can take care of them. 

This shift in living arrangements has led to a growing interest in Accessory Dwelling Units. ADUs would give families their space while being easily accessible in an emergency. An ADU is a practical solution for multigenerational families for many reasons, but they aren’t just for multigenerational families. 

Let’s look at the benefits of having an ADU on your property.

1. ADUs Can Be Used To Earn A Passive Income

Today’s economy strains many households, but an ADU can help lessen the pain. These structures can generate passive income when you rent the space out. Since an ADU typically has a private entrance and all the fixings of a regular house (private kitchen, bathroom, and bedroom), you can list it as a short-term rental or long-term. 

2. Increase Property Value

Not only can an ADU generate passive income, but it can also increase your property’s value as well. Keep in mind that not all ADUs will be valued the same. Converting a garage will garner less value than a brand new addition or a completely detached ADU. 

If you’re uncertain about what kind of ADU to put on your property, we recommend consulting a real estate agent. They will be able to tell you what kind of ADU is most desirable among local buyers – if at all. 

3. Host Friends and Family

Whether you’re building an ADU for personal use or to appeal to a larger buyer pool, an ADU is a perfect addition for anyone who hosts family and friends. You can enjoy playing host during the day, and when the day’s fun is over, you and your guests can go to their own space for privacy and quiet. 

4. Low-cost Housing For Older family members or caretakers

Families with aging parents can save a lot of money by having their families live with them instead of putting them in an assisted living facility. Conversely, elderly people can continue to live in their homes and have a live-in caretaker in their private dwelling in the backyard. ADUs are a fantastic way to give loved ones or caretakers their space while nearby in an emergency. 

5. Adult Children Can Live With Parents Longer

ADUs aren’t just good for families with aging parents – they’re great for college-age children who are wracked with debt and cannot afford to live independently. Parents can also have their older children move back home if they run into any kind of hardship, whether personal or financial. Of course, you can certainly charge them rent or set up some kind of arrangement that works for everyone. 

6. ADUs Can Be Used For Anything

We’ve talked a lot about how an ADU is useful for multigenerational families or for generating passive income, but it can be used for much more. For example, you can turn the ADU into a creative studio, a home office, a gym, or a place to unwind. The beauty of ADUs is that they can be turned into whatever you want them to be. It can even serve as a shrine for your favorite music band, your extensive collection of Star Wars memorabilia, or a personal greenhouse. 

Accessory dwelling units are worth the investment!

ADUs are popular among multigenerational families because they offer a solution for those who don’t want their loved ones struggling to afford to live on their own or in a retirement community where the level of care leaves much to be desired. These structures can also be a means of generating extra income when you rent them out. 

It’s important to note that accessory dwelling units can be an apartment over your garage, a basement apartment, or a separate structure in the backyard. But, before you start planning to put an ADU of some kind on your property, you need to research HOA rules and local laws regarding ADUs. You don’t want to get slapped with a fine or an order to remove an illegal ADU! 


  • John has worked alongside Real Estate Giants across USA and Canada for decades. Since he started Prudentialcal, he has been actively rendering service as business adviser to many companies in the real estate industry. He formed Prudentialcal in hopes of providing the most reliable stories and information there is in the vast industry of real estate

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