Featured News

Categories: US Real Estate

Granny Flats are growing in popularity due to the housing crunch, study finds

The number of accessory dwelling units in the U.S. has increased dramatically as a result of the housing inventory crunch, especially in high-cost areas where populations have risen significantly over the last decade, according to a new Freddie Mac study.

The research found there are 1.4 million ADUs in the U.S., which include granny flats, garage apartments, and in-law suites. These ADUs are either attached or detached from the main property, Freddie said.

Freddie’s study focused on more than 600 million MLS transactions from the late 1990s until the present day in order to put a finger on the growth of ADUs in the U.S.

The researchers found that 70,000 homes with ADUs were sold in 2019, which is around 4.2% of homes sold via the MLS that year. In 2000, just 8,000 properties with ADUs were listed and sold, amounting to just 1.1% of that year’s total.

“The nation’s affordable housing crisis has intensified in this turbulent economic environment, and ADUs are increasingly providing a viable affordable housing option for people of all ages,” said Sam Khater, Freddie Mac’s chief economist. “This analysis is both unique and large in scale, giving us insight into the growing movement of accessory dwelling units.”

Demand for ADUs seems to be higher in fast-growing parts of the U.S. These include Sun Belt states such as California, Florida, Texas and Georgia, where half of the country’s 1.4 million ADUs are located. In addition, cities such as Portland, Oregon, Dallas, Seattle, Miami and Los Angeles have all seen big growth in the number of ADUs over the last half a decade.

Some homeowners transform their ADUs into rentals to generate an additional income stream. According to Freddie Mac, around 8,000 ADU rentals were leased in 2019, comprising 2.9% of the total number of homes leased via the MLS.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

Recent Posts

Unlocking the secrets of real estate gaming

We live in a world where virtual landscapes have become playgrounds for exploration. Real estate…

12 hours ago

Navigating the Future Landscape: How AI is Revolutionizing Mortgage Lending

The financial industry, characterized by its intricate networks and substantial data volumes, is undergoing a…

13 hours ago

eXp Realty Agents Take Center Stage for EXPCON 2023, Real Estate’s Ultimate Agent-Centric Event

 eXp Realty®, “the most agent-centric real estate brokerage on the planet™” and the core subsidiary…

14 hours ago

Century 21 Brand expands to the Charlotte Market with the Cornelius Brokerage

Broker/Owner and Top Charlotte Producer Elevates his Company as a New CENTURY 21 Affiliate Century…

1 day ago

JPAR® “Know More Grow More” Series to Focus on Recent Industry and Market Changes

JPAR®, an influential player in the real estate industry, is proud to announce the second…

1 day ago

The Ultimate Guide to Top Home Devices for Pest Control

Pests are unwanted guests in any household, causing a variety of issues from spreading diseases…

1 day ago