Triangle Area Real Estate News & Information

We reported last week about the trend towards an uptick in people choosing a multigenerational household in The Triangle and nationally, as an alternative to an aging in place community. Some of the reasons people are choosing this is that it increases closeness between generations, helps with childcare, lack of affordable housing, and the sharing of household costs. This trend was especially noticeable during the COVID pandemic, when lock downs made it difficult to see loved ones or many chose to have bubbles of people that they would be visiting. Now that restrictions are lifted, people are still considering the ways to help loved ones age in place, at their homes. This week we are outlining what you need to know about building new or expanding on existing property to accommodate for an accessory dwelling unit for a loved one.

What is an Accessory Dwelling Unit?

Simply put; an accessory dwelling unit is a separate dwelling unit located on your property. These can be remodels include, garage or carriage house remodels or free standing tiny homes or guest cottages in your backyard. The appeal of the accessory dwelling unit is that the family member retains a level of privacy and independence, while still sharing in responsibilities and family time. These can add greatly to the resale value of a property as there is a great demand for these type of properties and a very limited supply.

How is an ADU regulated? Who can get one?

Some neighborhoods will not allow additional structures on the property, while zoning in some areas requires ADU's to connect separately to sewers or to have a separate septic system installed, and still others place prohibitive restrictions essentially making the addition of an ADU all but impossible. Raleigh, for example, is one such area that has relatively restrictive zoning. While they have relaxed some measures to allow for this, before you become swept up in the tiny house craze, contact a member of our team to get a full view of the feasibility.

All of this probably sounds great, and many homeowners think, why would I not do this. The answer is that it was not necessarily possible for homeowners without proper zoning. While California has a progressive policy on ADUs, "Ninety percent of the U.S. has bad ADU regulation," according to Kol Peterson, the owner of Accessory Dwelling Strategies LLC. For this reason, prefab innovators are finding creative ways around zoning and creating new sustainable options for seniors.

What are the ADU options?

Many of the ADUs are remodels, but the rise of the prefab ADU is staggering. Prefabricated homes are gaining a lot of traction from sustainability elements to the ease of onsite constructions. These are definitely not cheap though. Some prefab homes are as expensive as new homes. Additionally, despite there being ways around zoning restrictions using prefab ADUs, local Triangle restrictions still can pose a problem. Should the restrictions ease, as a result of too little housing and a swelling aging population, this may become more of an option for multigenerational housing in The Triangle.

Financing and ADUs

One of the biggest considerations for homeowners considering ADUs is financing. Lenders are not likely to finance remodels or ADUs. According to Marketwatch, most ADUs are funded with cash, a home equity line of credit, a cash-out refinancing or some combination. There are no financial institutions that have products designed specifically for ADUs. Consider the average price is nationally for and ADU is around $200,000,

Final Word on ADUs and The Triangle

As we continue to experience a tight housing market and more seniors reaching an age where aging in place must be considered, we will likely see more local politicians tackling this subject. My NC Homes specializes in meeting needs for those who are aging in place and selling in The Triangle and will continue to report on this trend and local zoning changes and regulations that effect aging in place. Contact My NC Homes if you would like more information!