Top trend: The big ADU comeback

Many factors are currently contributing to a noticeable return to multigenerational or extended family living, and a concomitant resurgence in the popularity of additional / accessory dwelling units (ADUs) such as converted garages, garden cottages, or "granny flats".

For many people, a single-family, freehold home in an aspirational suburb or estate is still their housing dream, but this nuclear family arrangement is actually relatively new, having really only become entrenched since the end of WW2.

Different patterns of housing across families, communities, and types of land were far more common before that and encompassed a range of housing types such as semi-detached and terrace homes, walk-up duplexes and triplexes, multifamily apartment complexes, and housing co-operatives as well as extended family farms and private estates.

There were also, of course, many more ADUs, and although known by many different names, these all essentially refer to the same thing: an additional unit of housing on a single stand, typically smaller than the main residence, which has its own kitchen, bathroom, and entrance.

Long before the "tiny homes" movement, ADUs were the original compact living option, and now they are making a big comeback thanks to the huge rise in working from home (WFH), a growing preference for aging in place, and global economic uncertainties that are pricing younger adults out of the single-family market. Typically single-story structures, they make great home offices and places for older family members to live, and provide privacy and independence for grown children who can't yet afford their own home.

However, these factors are not the only contributors to a return to extended family living; rising healthcare costs for seniors, rising concerns about the safety of children and teens, a post-pandemic focus on family togetherness, and concerns about the environment are also part of the picture and are prompting many existing homeowners to create new ADUs.

And more local authorities are now realizing that outside of families needing more accommodation, ADUs can also offer many benefits in terms of urban densification and community development. They allow for better utilization of existing space and existing infrastructure within urban areas by converting underutilized spaces like garages or storerooms into homes. This can help cities and ratepayers contribute to sustainability goals and can also lead to fewer carbon emissions by enabling shorter commutes. 

New ADUs also require fewer building materials to construct and can make use of the latest knowledge and technologies in terms of insulation and green heating or cooling. Alternatively, they can and increasingly are prefabricated, which means even less waste and loss.

Importantly, ADUs can also enable urban renewal without extensive disruption to existing communities. As new people of different ages and from different walks of life are added to an area, it becomes more attractive to all sorts of small businesses which create more local employment opportunities as they flourish.

ADUs can help address housing shortages, too, by providing more affordable housing options within established areas. Some are used as rental units and by expanding the local rental market, they can help to staunch soaring rental costs, while at the same time providing income for homeowners who need help paying off their bonds.