With prices continuing to increase, affordable housing is becoming a more challenging situation for the American family. Something noted even more by families in higher cost of living areas. Expenses seem to go up every year, but these costs aren’t necessarily met by increases in household income in difficult economic times.
Having an ADU or JADU represents a potential income stream – one that can be leveraged against your existing primary unit. Often, building an ADU or converting part of your home to a JADU can make good economic sense and offset its potential costs with rental income. Using some forethought and planning, they can also be profitable after creation.
With the costs of rentals going up, many individuals would prefer to live in a residential neighborhood with amenities rather than a more traditional apartment complex. Making a JADU an attractive option. Also, a separate ADU is essentially a self-contained dwelling and smaller home. In today’s market, smaller homes are in high demand. So, smaller residences and real estate are often the most attractive to potential renters. However, these aren’t necessarily inexpensive.
Rent Café notes that the average rent nationally for a 792 sq. ft. apartment (generally a one or two bedroom) is $1,464. But, in higher cost of living areas, this number jumps significantly. As an example, in Los Angeles, the average is $2,375 and San Francisco $3.111.