The landscape of housing is shifting, and with it, our understanding of what "home" truly means. In Massachusetts and Rhode Island, a powerful solution is emerging in the form of ADUs. These versatile spaces are not just additions to properties - they're helping to solve the housing crunch one backyard at a time.
What is an ADU?
An ADU, or Accessory Dwelling Unit, is a secondary housing unit located on the same residential lot as a primary dwelling. Essentially, it’s an additional living space next to, or attached to, an existing single-family home.
In a time of rising housing costs and limited housing availability, ADUs are a practical alternative to building new properties. They can provide rental income, housing for aging family members or adult children, and can lead to increased property values and equity for homeowners. And thanks to new state laws, ADUs are more accessible to MA and RI homeowners than ever before.
ADU Construction Options
ADUs can take several different forms, but they typically must have their own separate entrance. Massachusetts and Rhode Island have different legislation around these dwellings, and exact construction specifications may differ based on local zoning laws, but options for ADUs commonly include the following:
In Rhode Island, detached ADUs can only be built on lots that are at least 20,000 square feet. In Massachusetts there is no minimum lot size specified for detached ADUs under state law, but they generally must be at least 350 square feet and cannot exceed 900 square feet. Specific regulations can vary by town, so it’s best to consult a qualified contractor who is familiar with the local requirements for ADUs.
Aging in Place and Multigenerational Living
ADUs offer a profound impact on families, particularly when it comes to caring for aging loved ones. They allow senior citizens to "age in place," remaining close to their children and grandchildren while maintaining their independence. Imagine the peace of mind knowing your parents are just a few steps away, yet they have their own private living space.
Moreover, ADUs can provide independent living options for adults with special needs, fostering a sense of autonomy within a supportive family environment. They can also be a great option for young adults struggling to find their own home in today’s challenging housing market.
Weighing the Pros and Cons
Like any home improvement project, ADUs come with some potential advantages and disadvantages. Let’s take a closer look at some of them.
Pros:
Financing an Accessory Dwelling Unit can seem daunting, but several options are available to homeowners. Common financing options include home equity loans and lines of credit, cash-out refinancing, construction and renovation loans, FHA loans, and conventional mortgages. Interest rates will vary depending on the type of loan and the financial institution you borrow from, but ensuring you have a strong credit score and credit history will help you to secure more favorable loan terms.
A Future of Flexible Living
ADUs are more than just extra rooms; they're a solution to the evolving needs of modern families. Whether you're looking to provide a home for an aging parent, an independent living situation for an adult child, or you simply want to maximize your property's potential, an ADU can offer a promising path forward. As Massachusetts and Rhode Island continue to embrace this innovative housing solution, we can expect to see a more adaptable and inclusive future for families across the SouthCoast region.
If you’re a homeowner in MA or RI and looking to explore ADU financing, don’t hesitate to reach out to our dedicated mortgage team today.
What is an ADU?
An ADU, or Accessory Dwelling Unit, is a secondary housing unit located on the same residential lot as a primary dwelling. Essentially, it’s an additional living space next to, or attached to, an existing single-family home.
In a time of rising housing costs and limited housing availability, ADUs are a practical alternative to building new properties. They can provide rental income, housing for aging family members or adult children, and can lead to increased property values and equity for homeowners. And thanks to new state laws, ADUs are more accessible to MA and RI homeowners than ever before.
ADU Construction Options
ADUs can take several different forms, but they typically must have their own separate entrance. Massachusetts and Rhode Island have different legislation around these dwellings, and exact construction specifications may differ based on local zoning laws, but options for ADUs commonly include the following:
- Interior ADUs: An interior ADU involves converting an existing space within your home, such as a spare room, basement, or attached garage. Interior ADUs are commonly referred to as “in-law apartments” or “in-law suites”.
- Attached ADUs: An attached ADU is an addition built onto your existing home, creating a new, separate living space. Like interior ADUs, they are sometimes called “in-law apartments” and may also be referred to as “granny flats”.
- Detached ADUs: A detached ADU is a standalone structure, such as a converted garage or a newly built cottage, offering complete independence from the primary dwelling. Detached ADUs are often referred to as “tiny houses”, “backyard cottages”, or “garden suites”.
In Rhode Island, detached ADUs can only be built on lots that are at least 20,000 square feet. In Massachusetts there is no minimum lot size specified for detached ADUs under state law, but they generally must be at least 350 square feet and cannot exceed 900 square feet. Specific regulations can vary by town, so it’s best to consult a qualified contractor who is familiar with the local requirements for ADUs.
Aging in Place and Multigenerational Living
ADUs offer a profound impact on families, particularly when it comes to caring for aging loved ones. They allow senior citizens to "age in place," remaining close to their children and grandchildren while maintaining their independence. Imagine the peace of mind knowing your parents are just a few steps away, yet they have their own private living space.
Moreover, ADUs can provide independent living options for adults with special needs, fostering a sense of autonomy within a supportive family environment. They can also be a great option for young adults struggling to find their own home in today’s challenging housing market.
Weighing the Pros and Cons
Like any home improvement project, ADUs come with some potential advantages and disadvantages. Let’s take a closer look at some of them.
Pros:
- Can provide rental income. Rental income received from an ADU can help to offset the cost of home repairs, maintenance, and property taxes.
- Cost-effective alternative to assisted living. ADUs can be a more affordable option compared to expensive assisted living facilities.
- Close proximity to family. ADUs can foster strong family bonds and provide peace of mind.
- Low-cost housing opportunities. One of the most well-recognized benefits of Accessory Dwelling Units is their ability to provide low-cost housing alternatives in the wake of rising housing costs and low housing stock.
- Potential space reduction. ADUs may take away space that was previously used for other purposes.
- Financial investment. While likely to be cost-effective in the long run, building an ADU does require an initial financial investment.
Financing an Accessory Dwelling Unit can seem daunting, but several options are available to homeowners. Common financing options include home equity loans and lines of credit, cash-out refinancing, construction and renovation loans, FHA loans, and conventional mortgages. Interest rates will vary depending on the type of loan and the financial institution you borrow from, but ensuring you have a strong credit score and credit history will help you to secure more favorable loan terms.
A Future of Flexible Living
ADUs are more than just extra rooms; they're a solution to the evolving needs of modern families. Whether you're looking to provide a home for an aging parent, an independent living situation for an adult child, or you simply want to maximize your property's potential, an ADU can offer a promising path forward. As Massachusetts and Rhode Island continue to embrace this innovative housing solution, we can expect to see a more adaptable and inclusive future for families across the SouthCoast region.
If you’re a homeowner in MA or RI and looking to explore ADU financing, don’t hesitate to reach out to our dedicated mortgage team today.