Single Family + ADU The Untapped Potential of Single Family Homes with Additional Dwelling Units: A Win-Win for Homebuyers and Investors

The traditional model of homeownership often involves purchasing a single-family home — a standalone property meant for one family. But what if you could upgrade this conventional setup and turn it into a source of income or an investment that pays for itself? Enter the single-family home with an Additional Dwelling Unit (ADU), a rising trend in modern real estate that offers myriad advantages.


What is an Additional Dwelling Unit (ADU)?

An Additional Dwelling Unit is a secondary living space on a property that has its own independent facilities, such as a kitchen and a bathroom. ADUs can be attached to the main house, like a basement apartment, or detached, such as a backyard cottage. The concept might not be new, but its popularity is surging, and for good reasons.

The Financial Upside for Homebuyers

Mortgage Payments Relief

One of the most substantial financial commitments of your life is likely to be your mortgage payments. However, having an ADU can lighten this load significantly. By renting out the additional space, you can generate income to offset the monthly payments. Depending on the rental rates in your area and the size and condition of the ADU, you might even cover the entire monthly instalment or more.

Property Value

Adding an ADU increases the utility and, thus, the value of your property. Should you decide to sell your home in the future, a property with an ADU will likely be more attractive to potential buyers. The addition of an independent living space adds a layer of versatility that standard single-family homes simply can't offer.

The Investment Angle for Real Estate Moguls

Diversified Revenue Stream

For investors looking to add to their portfolio, a single-family home with an ADU provides a diversified revenue stream. You can rent out both the main house and the ADU, each attracting a different tenant demographic. While the primary unit might attract families, the smaller ADU may appeal to single professionals or couples.

Lower Risk Factor

One of the inherent risks in rental properties is vacancy. A vacant property yields no income, but the mortgage payments and maintenance costs still need to be covered. With an ADU, even if one of the units is vacant, the other can still generate income to help cover these expenses.

Legal and Zoning Considerations

Before embarking on adding an ADU to your property, it's crucial to understand the local zoning laws and regulations. Not all areas permit the construction of ADUs, and there are often specific guidelines on size, placement, and facilities. Here at EverJonge Homes we will work with our clients to make sure that the property in question is ideal for an ADU.

Benefits of Building New with ADU 

Building a new home with an Additional Dwelling Unit (ADU) from the outset offers several distinct advantages over retrofitting an existing property. First and foremost, incorporating an ADU into the initial construction plans allows for seamless design integration, ensuring that both the main house and the ADU complement each other aesthetically and functionally. This is especially important when considering things like utility connections, accessibility, and soundproofing. Planning from the beginning also allows you to optimise the use of the land, potentially maximising the ADU's size and features within the constraints of local zoning laws. Financially, you may find that bundling the cost of the ADU with the primary home's construction loan offers a more favourable interest rate compared to securing a separate loan or home equity line of credit later on for a retrofit. Moreover, you avoid the hassle and disruption of undergoing a significant construction project while living in the main home, and you can start generating rental income sooner. In summary, designing a new home with an ADU from the ground up provides a cohesive, cost-effective, and convenient approach to achieving a multi-functional property.


The benefits of a single-family home with an Additional Dwelling Unit are manifold. For the homebuyer, it offers financial security and flexibility. For the investor, it provides a diversified, lower-risk asset that's a valuable addition to any portfolio. In an interest rate environment that is making homes more expensive than ever, an ADU can be your secret weapon for financial stability and long-term prosperity.


Reach out to us today to see if a Single Family + ADU is a good solution for you.

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