In recent years, we have increasingly performed projects for middle-aged couples with their parents in mind. Specifically, to encourage the older generation to move in with the younger one. The best solution for this growing demand is to build an Accessory Dwelling Unit (ADU) attached to the single family residence. And the permitting process for this type of project has become increasingly easier to obtain.

ADU’s generally incorporate universal design elements which make it manageable to navigate through a comfortable living area, functional kitchenette, one or two bedrooms and a full bath. Lesser costly options would be to convert an existing office or garage bay to a bedroom, or reconfigure the existing main floor in some other way. Additions are nice for the separation of the ADU from the primary living space. It also becomes a long-term benefit as a rentable home.

This interview from 2011 followed the completion of the image above. A new garage separates the attached ADU from the existing home.

Cost analysis:
Assisted living cost (per year) = +/- $86,000
Approximate ADU cost (one time) = +/- $350,000

Over a period of 10 years, the ADU could save $500,000 in living expenses. If parents are moving to their children’s property, the ADU is a fantasitc way to transfer wealth from one generation to the next – if the parents have the cash to do so.  As with any project, ADU’s qualify for a construction loan, HELOC or reverse mortgage.  Contact your lender for the best solution to fit your needs.