As the U.S. continues to grapple with a persistent housing shortage, one solution is gaining traction across the country: Accessory Dwelling Units (ADUs). These smaller, secondary homes—often referred to as granny flats or in-law suites—are being heralded as a key answer to the housing crisis, providing much-needed housing options for both younger renters and aging baby boomers looking to “age in place.”
Bob Waun, co-founder of DIRT Realty, believes ADUs are a critical tool for increasing housing supply without the need for massive new construction projects. “ADUs can help solve the housing crisis in a way that fits seamlessly into existing neighborhoods,” says Waun. “They allow for more density without the disruption of large developments, and they’re a great option for families who want to provide affordable housing for aging parents or grown children.”
But while the benefits of ADUs are clear, many communities are still resistant to the idea, citing concerns about density, property values, and parking. Waun sees this NIMBY (Not In My Backyard) mentality as a major barrier to solving the housing shortage.
“Too many communities are stuck in this NIMBY mindset,” Waun says. “They’re worried about overcrowding or changing the character of their neighborhoods, but we have to rethink how we use space if we want to solve the housing crisis. We need density, and ADUs are one of the best ways to achieve that in both urban and suburban areas.”
What Are ADUs and Why Are They Important?
An Accessory Dwelling Unit (ADU) is a small, secondary home built on the same lot as a primary residence. ADUs can be standalone structures, converted garages, or apartments built over existing garages or in basements. They typically range from 400 to 1,200 square feet and offer an affordable housing option for renters, family members, or homeowners looking to downsize.
ADUs have become particularly popular as a solution to both the housing shortage and the need for aging in place. As the baby boomer generation ages, more and more homeowners are looking for ways to stay in their homes and communities while reducing living costs and maintaining independence. ADUs offer a flexible, affordable solution by allowing aging parents to live near family while maintaining their own space.
“ADUs allow baby boomers to stay in the neighborhoods they know and love,” Waun explains. “It’s a win-win—families can be close to each other, while older homeowners can downsize without leaving the community they’ve called home for decades.”
ADUs and Affordability
The housing shortage is not only about the lack of units—it's about the lack of affordable housing. ADUs offer a unique solution to this problem by providing smaller, lower-cost housing options in established neighborhoods. Since they can be built on existing properties, ADUs avoid the high land acquisition costs that often drive up housing prices in urban areas.
ADUs also create opportunities for homeowners to generate passive income by renting out the unit, which can help offset the cost of building the ADU or even help cover rising property taxes and maintenance costs for aging homeowners.
“ADUs are an affordable housing solution that benefits both renters and homeowners,” Waun says. “They provide low-cost rental options while giving homeowners the ability to supplement their income. It’s a financial win for everyone.”
Addressing NIMBYism: Why Density is Necessary
Despite the many benefits of ADUs, some communities are resistant to the idea of increased density in their neighborhoods. This NIMBY mentality often stems from concerns about parking, overcrowding, and property values. However, Waun argues that communities need to embrace higher density if they want to solve the housing crisis and create more sustainable, livable urban environments.
“Density isn’t something to be afraid of—it’s something we need,” Waun explains. “Increased density means more housing options, more walkability, and better access to public transportation. It’s how we create vibrant, sustainable cities that work for everyone, not just for people who can afford large single-family homes.”
In many cities, zoning laws still prioritize single-family housing, which limits the number of units that can be built and exacerbates the housing shortage. By allowing ADUs, cities can increase density in a way that doesn’t require large-scale apartment complexes or major infrastructure changes. This kind of “gentle density” can help cities make better use of their existing infrastructure—such as roads, utilities, and public transportation—while providing much-needed housing options.
“ADUs offer a way to increase density without overburdening infrastructure,” says Waun. “They use existing roads and utilities more efficiently and can help reduce the strain on transportation systems by creating walkable, mixed-use neighborhoods.”
ADUs and Walkability
One of the major benefits of increasing density with ADUs is the potential to create more walkable neighborhoods. By adding housing options in areas that are already close to schools, shops, and public transportation, ADUs can reduce the need for long commutes and car dependency. This is particularly important for aging baby boomers, many of whom are looking for housing options that allow them to walk to amenities and remain independent without needing to drive.
“Walkability is key to creating livable, sustainable neighborhoods,” says Waun. “ADUs allow more people to live in areas where they can walk to what they need, whether it’s a grocery store, a park, or public transit. That’s not only good for residents—it’s good for the environment and for cities as a whole.”
ADUs as a Transportation Solution
Another major benefit of ADUs is their potential to reduce the pressure on transportation systems. As cities grow and more people move to urban areas, traffic congestion and the demand for parking have become serious challenges. By increasing density in walkable neighborhoods, ADUs can help reduce the need for cars, decrease traffic congestion, and encourage the use of public transportation.
In cities like Portland, San Francisco, and Los Angeles, ADUs have been embraced as a way to meet housing demand while encouraging more sustainable, environmentally friendly urban development. These cities have seen a surge in ADU construction after loosening zoning laws and streamlining the permitting process, creating thousands of new housing units without the need for major infrastructure changes.
“ADUs can help solve our housing and transportation challenges at the same time,” Waun says. “By building more housing in walkable areas, we can reduce car dependency, lower traffic, and make better use of public transit. It’s a smart, sustainable solution.”
The Future of ADUs
As cities and suburbs across the U.S. continue to grapple with housing shortages, ADUs are emerging as a practical and efficient solution. They offer the ability to increase density without the disruption of large-scale developments, provide affordable housing options for both renters and homeowners, and support aging in place for baby boomers.
However, for ADUs to reach their full potential, more communities will need to overcome NIMBY resistance and embrace the benefits of higher density. By allowing for more ADUs, cities can create more vibrant, sustainable neighborhoods that work for residents of all ages.
As Waun concludes, “We need to change the way we think about housing density. ADUs are a powerful tool for addressing the housing shortage, supporting aging in place, and creating more walkable, sustainable communities. It’s time for more cities to embrace them.”
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