Backyard Bonus
“Tiny” Home Additions
For some, it’s a studio. For others, a guest suite. For everyone, an Accessory Dwelling Unit — or ADU — is whatever it needs to be. These versatile home additions are a unique way to boost property value, add functionality, and make your home stand out from the rest. Whether you’re thinking about resale or simply want additional square footage, consider adding extra space that’s packed with potential.
ADUs are designed to function separately from the main house. They’re small living spaces that can be either free-standing or attached to an existing structure. To be classified as an ADU, they typically must be at least 150 square feet, built on a permanent foundation, and be equipped with a kitchen and bathroom.
According to Realtor.com®, a well-constructed ADU may generate an ROI of 30% in areas with a high demand for rental properties. If you’re thinking about listing your house for sale, the extra square footage may be appealing to buyers looking for flexible living space for growing families, hobbies or multi-generational housing needs.
Pro Tip: Building an ADU requires a solid understanding of local zoning laws. It’s also wise to work with a knowledgeable contractor who’ll guide you through the process and ensure the structure is up to code and ready to serve as a rental, guest suite or something entirely your own — it’s a blank canvas for whatever comes next.
15 Creative Ways To Use an ADU
- Long- or Short-Term Rental
- Art or Photography Studio
- Guest House
- Home Office
- Fitness Center
- Wellness Retreat
- Entertaining Space
- Granny Flat or College Student Suite
- Music Studio
- Gaming Room
- Culinary or Beverage Tasting Room
- Podcast Recording Space
- Personal Library
- Tutoring Center
- Home Theater
Millennials Prioritize Home Quality
Today’s millennial home buyers are looking for more than just square footage. They’re often drawn to homes where craftsmanship outweighs expansiveness. Slightly smaller houses with quality finishes, functional layouts and lasting value are bound to catch their attention.
In fact, a recent survey by the National Association of Home Builders reported while millennial buyers are more likely than other generations to prefer a larger house, they’re willing to sacrifice some of that space for higher-end features. The survey also noted a recent construction-industry trend toward building smaller homes, which still offer many of the amenities millennials value, including en suite primary bathroom finishes, built-in storage solutions, and outdoor living and entertaining areas.
This shift in priorities may be rooted in a desire for more intentional living. For this generation, home is a reflection of themselves, and builders are adapting to meet this expectation with a greater focus on quality over scale.
Savvy Upgrades, Significant Returns
Looking to boost your home’s value without breaking the bank? By focusing on these cost-effective projects, you can enhance your home’s attractiveness and increase its potential market value.
Don’t Curb its Appeal. First impressions matter. Simple landscaping, a new front door or a stylish garage door upgrade can significantly spruce up the exterior.
Serve Easy ROI. Instead of a full remodel, consider spicing up your kitchen with on-trend cabinet hardware, an updated backsplash, a new faucet, or contemporary light fixtures.
Give it a Color Update. A coat of paint can freshen up a space, giving it a revitalized feel. Light, neutral colors generally appeal to a broad range of buyers.
Step Up the Style. If it’s within your budget, refinishing hardwood floors or replacing worn carpet can quickly put your home on the must-see list of eager lookers.
Make a Splash. Re-grouting tile, installing new faucets, adding a modern mirror, or updating the lighting will make your bathroom feel polished and inviting.
Entering the Market: Gen Z Style
Gen Z is proving there’s more than one path to the front door. With smart and creative decision-making, here’s how young adults are securing homeownership.
Co-Buying with Friends
Sharing the cost of a home with a partner or roommates can make ownership more achievable.
Exploring Affordable Cities
Markets like Virginia Beach, Kansas City and Pittsburgh are top picks for value and lifestyle.
Opting for Fixer-Uppers
Taking on remodeling work saves money upfront and builds equity over time.
Getting Assistance From Family
Whether it’s financial gifts or loan co-signing, parents and grandparents often offer a support network.
Finding Financing Alternatives
FHA loans, first-time buyer grants and down-payment assistance programs are popular choices for those who qualify.
Real Estate Voted Best Long-Term Investment
The results are in, and Americans continue to rank real estate as the most trusted long-term investment. According to recent Gallup data, real estate is favored over other assets like gold, stocks and cryptocurrency as the best investment for the long-term.
Investing in real estate offers numerous benefits, including the potential to build equity and enjoy certain tax benefits. Additionally, the housing market typically experiences a lower degree of volatility than financial markets.
When investing in real estate, it’s best to approach the process with a clear strategy by working with a trusted real estate agent and a knowledgeable financial advisor. As always, factors like location and property condition are important considerations, but if you’re willing to commit the time and energy, real estate can be a key piece of a diversified portfolio.
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