ADUs are the Smart Investment for Senior Living
Paul and Rosa Boehm outside the Accessory Dwelling Unit they’re building in the backyard of their west San Jose home. Paul and Rosa are considering downsizing into the ADU. (Photo by Sean Havey for CalMatters)

ADUs are the Smart Investment for Senior Living

Possessing a retirement fund, even if you’re years away from your golden years, is essential. And one of the most effective ways to lengthen your retirement fund or make some extra cash in the meantime might include investing in an Accessory Dwelling Unit. Owning an ADU, it’s not just paying for your retirement — it’s investing in the kind of infrastructure you want to have access to when you’re older.

At present, it has become enormously challenging for boomerang folks to acquire their apartments or houses due to the excessively high-priced housing market. And while millennials are holding down jobs and starting careers, they’re also battling to pay back student loan debt and facing other significant setbacks like the current pandemic.

Why is an ADU the Smart Investment?

With nearly 22% of adults between 23 and 37 years old moving back in with their parents, Granny Flats are the best option for families to spend time with their loved ones while simultaneously supporting their independence in the best way they can. Also, by letting a loved one live in your investment property, you’re helping them to build a stronger financial foundation for their lives.

Those are just some of the main reasons ADUs have exploded in popularity in many West Coast cities. Los Angeles received about 67 times as many ADU applications last year as it did three years ago, according to data collected by the UC Berkeley Terner Center for Housing Innovation. San Diego, San Jose, and Portland, Oregon, have also seen significant upticks in applications.

ADU Construction in Los Angeles
Seniors in Additional Dwelling Units San Jose


Some estimates indicate that 80% of homeowners interested in building an Accessory Dwelling Unit are attracted to that form of multigenerational housing. Because ADUs are ideal for either grandparents or adult kids coming home to live or visit, or as a downsizing option if you want to retire but love your neighborhood too much. In that case, you can build an ADU, and you rent the main house.


With the price of rent soaring, families are seeking long-term housing for their family members. As a safe and private boomerang kid housing option, ADU’s are a much more affordable investment for your home — and an investment that appreciates, not just in value, but in long-term utility. 

ADUs are great for many different population groups, but they are the perfect retirement flat for seniors. Small and incredibly compact, building an ADU in the backyard will be easier to keep clean and take care of. For more information about ADU Construction Management in Los Angeles, contact us at (310) 974-3174 or schedule a free consultation.