<iframe title="Google Tag Manager" src="https://www.googletagmanager.com/ns.html?id=GTM-8CXX" height="0" width="0" style="display:none;visibility:hidden"></iframe>
Skip to Content

ADUs and the Rise of Backyard Houses

Maximize square footage and generate extra income with a backyard house or Accessory Dwelling Unit.

nicole willits headshot

ByNicole Willits

Published 2023-03-20

tiny house sitting in a grove of trees

Accessory Dwelling Units (ADUs) are a trend that isn’t going away anytime soon. For the last few years, Pella’s dedicated team of interior design, architecture, innovation and product experts that analyze current market trends have seen ADUs continue to grow in popularity.

Let’s discuss what ADUs are and the benefits they can bring to your home or property. We’ll also discuss the most popular uses, including granny pods and backyard houses, and cost to build.

What are ADUs?

ADUs, or Accessory Dwelling Units, are additional spaces built or placed on a homeowner’s existing property. Their average size is 600 to 1,200 square feet, depending on state and city regulations, and they can be prefabricated or quickly assembled on site.

ADUs allow homeowners to extend living spaces, for personal use or as additional income. Many units run on the existing home or properties utilities, include their own kitchen, bath, living/sleeping area and a separate entrance from the main home.

Granny Pods, Backyard Houses and Other Popular Uses for ADUs

ADUs serve a multitude of purposes and can be customized to your unique space and lifestyle. We’ll examine a few of the most popular uses of ADUs including granny pods, backyard houses, offices, gyms and hobby spaces.

Granny Pods

Also known as granny flats, granny pods are popular names for ADUs serving as a home for elderly or aging family members. These pods allow aging family members to be close to their loved ones, who are often caring for them, while maintaining privacy and independence. They are a popular alternative to full-service nursing homes if the family’s lifestyle and property allows and are designed with accessibility in mind. Consider windows with our Easy-Slide Operator window hardware and accessibility lever that require less than five pounds of operational force to lock, unlock, open and close​. Or consider a flush sill or a low-profile sill to help reduce tripping hazards.

interior view of a tiny house with lifestyle sliding doors

ADU by Addaspace

Guest Houses and In-Law Suites

Guest houses or in-law suites are another popular use of ADUs. They can be used when guests are visiting or even for returning adult children or college graduates. With a separate entrance, kitchen and bathroom, guest houses offer close proximity to the main house while maintaining privacy, perhaps for those staying for longer periods of time. Even though ADUs may have a small footprint, the space doesn’t have to feel small. Expansive patio doors can be used to create seamless indoor/outdoor living.

interior view of a small home gym lifestyle series windows

Home Gym ADU by Addaspace

Bonus Spaces: Backyard Office or Backyard Home Gym

A backyard office or backyard home gym offers a great opportunity for a distraction-free space where an individual can leave the main house and dedicate themselves to work, exercise or creativity. To create an inspiring space that feels larger than it’s footprint, homeowners can fill the space with floor-to-ceiling office windows and expansive office patio doors.

In the past few years, we’ve seen the demand for backyard offices and backyard home gyms surge in popularity as the definition of work and home environments has evolved. Additionally, the backyard space delivers flexibility and can easily change as a property owner’s needs evolve. Today’s much-needed home office could later become a yoga space, a child's play or education space, or art studio.

Income-Generating Backyard Rentals

Making your backyard house or ADU an income producer stretches the benefits of the ADU further. Homeowners may rent these self-contained ADUs to travelers through services like Airbnb or VRBO. This can help offset the cost of buying a property with an ADU already on it or building one. Homeowners can maintain their privacy and security because the ADUs are separate from the main house, while bringing in additional income.

construction worker installing lifestyle series windows on tiny house

The Benefits of Building an ADU

From flexible square footage and increasing home value to sustainability and accessibility, the benefits of building an ADU are vast. Adding usable square footage to a property can increase your home’s value, especially in densely populated areas where space is at a premium.

Additionally, ADUs and their flexible design are another advantage of their construction. An ADU can be used as a home office during the week and transform into a backyard guest house on the weekends. Some ADUs can also be moved if a homeowner later chooses to do so because these structures don’t require concrete-pad foundations or trenches. This flexible design means that if the ADU is moved, its former ground space is ready to be used for another purpose.

Sustainable ADU Construction

When exploring construction methods for your ADU, consider sustainable prefabrications. Rather than building their units entirely from scratch, companies like Addaspace recycle retired metal shipping containers as the core portion of their structures. “These containers are a sustainable and cost-effective solution that allows us to use less new lumber and keep our ADUs reasonably priced for our customers,” says Andrew Naperotic for Addaspace. “Addaspace’s ADUs are more spacious than the so-called ‘tiny houses’ that have been popular in recent years.”

Kit homes, like those from Hygge Supply,are another way to build an ADU sustainably. With these homes, materials and finishes are pre-selected and shipped directly to a build site. Materials precut to the exact measurements and amounts you need, eliminate many concerns about waste on a traditional construction site. Kit homes are known for their simple and quick construction.

How much do ADUs cost?

ADUs have a wide range in cost, based on a variety of inputs. The cost depends on where you are building, the size of the structure, if you are renovating or starting from scratch and finishes. Traditional ADUs, or those with a separate kitchen and bathroom, can cost anywhere from $25,000 to $300,000.If you are considering building an ADU, we suggest you connect with your local planning and development services as there is the potential of increasing the property value, but also tax burdens and some localities. To help ease the tax burden and encourage more of these housing opportunities, some cities may help with tax abatements to help offset the initial costs.

If you’re ready to use windows and doors to maximize light and space in your ADU, reach out to a local Pella expert who can help.

Reach out to a local Pella expert to bring your vision to life.