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ADUs and the Real Estate Market in Asheville

There have been countless cases where ADUs helped people get down on their feet. This doesn’t come as a surprise! These dwellings provide accessible housing and help thousands of people earn extra rental income. As a result, many communities have flourished with their help.

Asheville is one of the many cities who have taken an interest in ADUs. After all, these dwellings have helped realtors, homeowners, and renters find their place under the sun. Read on to discover how and why. 

What Is an ADU?

For the unacquainted, an ADU is an acronym for Accessory Dwelling Unit. This is a small house or apartment that is built on a lot with a single-family home. Typically, ADUs are less than 600 sqft and are equipped with a kitchen and bathroom. However, every state and city has different requirements for an ADU. 

In Asheville, ADU must be less than 800 sqft (1000 sqft for an attached ADU) or 70% of the primary home. Attached ADUs can be placed within the house, side by side, or built on top of a garage. You can check Asheville ADU guide to learn more about their requirements.  

What Makes ADUs Special?

Whether you are in Asheville or Chattanooga, the primary reasons why people love ADUs so much are that they are practical and more affordable. For instance, an ADU is much less expensive than building a house from scratch or buying a new one. Other benefits of building an ADU are:

  • You only pay for construction as you or the homeowner already own the land
  • You can use HELOC or refinance your mortgage to build an ADU
  • You can use ADU for rental income
  • ADUs provide more affordable housing in communities
  • They allow families to grow and build a sense of community
  • ADUs are especially beneficial for hosing younger and senior family members 
  • ADUs use less energy (especially attached internal ones)
  • They increase home value

ADUs in Asheville

Some US cities and neighborhoods don’t allow ADUs. However, Asheville has always welcomed ADUs with open arms. The city knows the value of these structures and especially emphasizes their benefit when it comes to housing senior citizens and students. 

The more ADUs the city has, the more seniors can age-in-place and the more young people can start their adulthood on firmer grounds. Asheville even allows building ADUs in historic districts. However, the design has to comply with stricter building rules and regulations. 

It’s important to note how ADUs proved extremely beneficial for Asheville citizens during the pandemic. They proved a reliable and affordable housing option for renters. In addition, they helped many homeowners earn extra income from rent and overcome such difficult times.   

However, the story of Asheville and ADUs is far from complete. The Asheville committee is debating ways to improve the housing situation. So, they are considering incentives for the construction of ADUs. This will further motive homeowners to take action and help their community grow. There is also talk of allowing homeowners to offer short-term rental ADUs. This will increase revenue from tourists and further benefit the city’s economy.

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