How could ADUs ease America's housing crisis right from your backyard? Yahoo Finance's Akiko Fujita gives an inside look into an accessory dwelling unit and the role these small homes could play in alleviating the U.S. housing shortage.
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Video Transcript
AKIKO FUJITA: You know, for homeowners, ADUs are all about flexibility. He talked about the additional income generators through short-term rental, long-term rental. We've also heard from realtors that increasingly homeowners are looking at these spaces as an office space, with so many more people working remotely.
Now, we are outside the ADU now. And I want to walk this direction because that will give you some perspective on where they are being built. That's where the ADU is. This is where the actual home is. In some cases, you've got homeowners who are actually living in the ADU so they can rent out the main home as well.
Now, the housing affordability issue really has driven the growth that we've seen here in California. And it's worth noting that the average or we should say the median rental here in California is 41% higher than the national average. But one of these units can go and rent for anywhere from $2,000 to $3,000 a month. So that's raised some criticism from those who say, look, this isn't exactly affordable housing.
We should note it's not just California, Denver over in Colorado, the most recent city to pass changes to their zoning laws to allow for more ADUs. We've also seen changes in states like Washington State. So this is something that is really taking shape across the country as we look at the housing crunch, supply crunch, as well as the affordability issue.
By the way, the next step here in California where people are looking at is the potential for homeowners to be able to sell one of the ADUs. Right now, it's strictly limited to rentals. If they can actually build out the unit for roughly $300,000. Potentially sell it. That will really open up the real estate market here. Rachelle.
RACHELLE AKUFFO: I mean, that's fascinating. You have to wonder what that'll do for like housing comps when you sort of factor that in with having the main house right there as well. Fantastic stuff. Our very own Akiko Fujita, thanks so much.