Accessory Dwelling Units vs. Assisted Living

Accessory Dwelling Units vs. Assisted Living: Invest Wisely and Age in Place

In recent years, the real estate market has seen a significant shift towards multigenerational living. This trend, characterized by multiple generations of a family living under one roof, is driven by various factors including economic considerations, cultural values, and the desire for stronger family bonds. 

One of the key elements facilitating this lifestyle is the accessory dwelling unit (ADU). These secondary housing units, often referred to as in-law suites, granny flats, or casitas, offer a range of benefits that cater to the diverse needs of multigenerational families.

Aging in Place: A Preferred Choice for Seniors

Seniors today overwhelmingly prefer to age in place, surrounded by the comfort and familiarity of their own homes. According to AARP, "Nearly 90% of adults over age 65 want to stay in their current home and community as they age.”¹ This strong preference highlights the importance of creating living environments that support aging individuals, making ADUs an attractive option for many families.

Economic Sense of Aging at Home

The financial aspect of aging at home versus moving to a retirement home is compelling. The typical monthly cost for a senior retirement home in Boise, Idaho, can range from $3,500 to $5,500.² Over the course of a year, this can amount to $42,000 to $66,000. Instead of channeling these funds into a retirement facility, families can invest in adding an ADU to their property. This investment not only enhances the property’s value and keeps the money in the family, but also provides a dedicated space for aging parents, ensuring they remain close to their loved ones.

Versatility of ADUs: Beyond Aging Parents

While ADUs are an excellent solution for aging parents, their benefits extend far beyond this purpose. These versatile living spaces can accommodate:

1. College Graduates: Young adults transitioning from college life to the professional world can benefit from the independence of an ADU while still being close to family. This arrangement provides a supportive environment as they embark on their careers.
2. Disabled Adult Children: Families with disabled adult children can use ADUs to create a safe, accessible living space that offers privacy while ensuring they remain under the care and supervision of their loved ones.
3. House Guests: Hosting friends and extended family becomes more convenient with an ADU. Guests can enjoy their own space without disrupting the household’s daily routine.
4. Rental Income: In some cases, ADUs can be used as either short-term or long-term rentals, providing an additional income stream for homeowners. This flexibility can help offset mortgage costs or fund future home improvements.

A Smart Investment for the Future

The rise of the multigenerational buyer is reshaping the housing market, and the inclusion of ADUs in family homes is a testament to this change. These units offer practical solutions for diverse family needs, fostering closer relationships and providing economic benefits. For families considering a home purchase, investing in a property with an ADU or adding one to an existing home can be a smart move, ensuring that the home adapts to the family's evolving needs over time.

As families continue to embrace multigenerational living, the demand for homes with ADUs is likely to grow, making them valuable assets in today's real estate market.

Click here for one of Boise’s premier homes with ADUs, nestled in the East Boise foothills.

References:
1. "Aging in Place: Growing Older at Home." AARP. 
2. "Cost of Assisted Living in Boise, ID." SeniorHomes.com.