Is an ADU the Right Solution for You? Here’s What You Need to Know

March 5, 2025 | Real Estate Exchange
Home > > Is an ADU the Right Solution for You? Here’s What You Need to Know

Is an ADU the Right Solution for You? Here’s What You Need to Know

Struggling to find a home within your budget? Or maybe you already own a home and could use extra rental income or a dedicated space for aging family members. Accessory dwelling units (ADUs) are becoming an increasingly popular solution for homeowners and buyers looking for more flexibility in today’s market.

What Is an ADU?

An accessory dwelling unit (ADU) is a secondary living space located on the same property as a single-family home. It must have its own separate living, sleeping, cooking, and bathroom facilities, making it a fully independent unit. ADUs come in a variety of forms, including:

  • Converted spaces within the home – such as a finished basement apartment
  • Attached additions – like a unit above a garage or a side extension
  • Detached structures – including guest houses, tiny homes, or even converted sheds

Why ADUs Are Gaining Popularity

ADUs are becoming a sought-after feature for homeowners and buyers alike. According to a recent survey, nearly a quarter of real estate professionals say ADUs—often referred to as in-law suites or guest houses—are among the most desirable home features today.

With rising housing costs, an ADU can provide financial relief and added flexibility. Whether you purchase a home with an existing ADU or build one yourself, here are a few key benefits:

  • Extra Income – Renting out an ADU can help offset mortgage costs, generate passive income, or provide a space for short-term rentals.
  • Aging in Place – ADUs offer a way for aging family members to stay close while maintaining independence.
  • More Space for Family – Whether it’s grown children, extended family, or guests, an ADU provides a private yet connected living space.
  • Home Office or Studio – Some homeowners use ADUs as a separate workspace or creative retreat.

What to Know About ADUs in Massachusetts and New Hampshire

Regulations surrounding ADUs vary by state and even by town, so it’s important to check local zoning laws before moving forward.

  • Massachusetts: ADU laws have become more flexible in recent years, with many towns allowing homeowners to build or convert spaces for extended family or rental purposes. However, some municipalities still have restrictions on lot size, occupancy, and rental use.
  • New Hampshire: The state has taken steps to encourage ADU construction, requiring local governments to allow at least one ADU per single-family lot. However, some towns impose restrictions, such as owner-occupancy requirements or limits on rental use.

Since local rules can differ, it’s essential to work with a real estate expert who understands the requirements in your specific area.

Final Thoughts

If you’re looking for a way to maximize your property’s potential, an ADU could be a great investment. Whether you want extra income, a space for loved ones, or a flexible work-from-home setup, ADUs offer plenty of possibilities. Be sure to check with local authorities and a real estate professional to understand what’s allowed in your town.

Would an ADU work for your lifestyle? Let’s explore the possibilities together!

JoAnne Hamberg Founder of The Real Estate Exchange
JoAnne Hamberg, Broker

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