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Image of a beautiful backyard home, representing an affordable solution to housing shortage.

Embrace Backyard Homes: Building Solutions to Housing Supply Shortage

As you probably noticed, the housing market is tighter than ever before, with many people struggling to find affordable homes. So, why not consider building an Accessory Dwelling Unit (ADU), also known as a backyard home? 🏡

What’s An ADU?

These are structures built on the lot of an existing home, offering a cost-effective solution to the current housing shortage. With mortgage rates close to a 20-year high, and housing inventory significantly reduced, an ADU can be a financially savvy move.

Why Should I Consider An ADU?

  • Affordability: ADUs are typically smaller and cheaper to build than single-family homes.
  • Versatility: Whether it’s an in-law suite, rental income source, or home office, ADUs offer flexibility.
  • Addressing Housing Shortage: The high demand for affordable housing can make ADUs an attractive option.

Professor Jeff Kruth and Professor Murali Paranandi from Miami University highlighted the current housing crisis and the possible role of ADUs in solving it. Our traditional approach to housing, dominated by single-family units, has become unaffordable for many. ADUs, with their social, economic, and environmental benefits, could be the solution we’ve been looking for!

However, there’s been historical resistance to ADUs, and the process of obtaining the necessary permits can be complex. Thankfully, some states are softening their stance as the housing crisis deepens. California, for instance, has made strides in this area, even offering subsidies to make ADU construction more affordable.

A recent survey by mortgage giant Freddie Mac found that 32% of homeowners were interested in building an ADU on their property after learning about it. In fact, ADU permits in California have surged from 9,000 to 12,392 between 2018-2020.

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High Mortgage Rates: A Hurdle To Overcome

High mortgage rates have placed the US housing market in limbo. Current homeowners are hesitant to list their properties fearing high financing costs for a new home. As a result, the high cost of borrowing is shutting out both buyers and sellers, keeping housing prices sky-high.

The Final Word

As we navigate through the housing crisis, rethinking existing policies and imagining new ways of developing housing is essential. ADUs are certainly a part of the solution. Explore the possibility of building an ADU with our free property report at The ADU Guide.


Q: What is an ADU? A: An Accessory Dwelling Unit (ADU) is a secondary housing unit built on the lot of an existing home.

Q: How can ADUs help with the housing shortage? A: ADUs can help by creating additional affordable living spaces, particularly in areas with a high demand for housing.

Q: What are the benefits of building an ADU? A: ADUs are typically cheaper to build and offer flexibility for multiple uses such as rental income or a home office.

Q: What’s the stance of different states on ADUs? A: Different states have different regulations. For instance, California is promoting ADU construction through subsidies and a simpler permit process.

For more detailed insights, check out the source article here. Credit: Jennifer Sor

Now it’s your turn! Let’s redefine housing together. 🏘️


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