Princeton Town Topics – Let’s Talk Real Estate – May 14, 2025
ARE ADUs WORTH IT IN REAL ESTATE?
Accessory Dwelling Units (ADUs)—small, secondary homes on single-family lots—have gained popularity as creative solutions to housing shortages. Whether it’s a garage conversion or a standalone backyard unit, ADUs offer added flexibility for homeowners.
But are they worth it? The answer depends on your goals. If you plan to rent the ADU for income, house a family member, or use it as a home office or guest space, the benefits can be significant. You’ll generate revenue, increase property utility, and possibly boost long-term value.
However, if you’re only building an ADU to increase resale value, it might not pay off. Construction costs are high—often six figures—and not all buyers are willing to pay a premium for a secondary unit. Without a clear plan to use it, the return on investment can fall flat.
Bottom line: ADUs are worth it only if you plan to put them to real use—not just rely on resale.
